A Catalyst For Growth in Africa: Access Bank PLC

ACCESS BANK PLC
Annual Report and Accounts 2010

A Catalyst
for Growth
in Africa
Access Bank Plc

Plot 1665, Oyin Jolayemi
Victoria Island, Lagos State,
Nigeria
T: (+234) 1 461 9264-9
F: (+234) 1 461 8811 Access Bank Plc
www.accessbankplc.com Annual Report and Accounts 2010
Introduction
& contents
Access Bank Plc is the Bank of best practice with

consistent growth in all key performance indicators
over the past 8 years. We are currently one of the
largest banks in nigeria. As an emerging leader in Africa,
Access Bank seeks not only to rank amongst the top 3
nigerian Banking Groups but also to become a major
catalyst for growth across the African continent.
Access Bank’s corporate social Responsibility

(csR) Report is prepared in order to provide
information on the economic, environmental
and social performance that contributed to our
sustainability in 2010. A summary of which can
be found on page 26 of this report.
oVeRVIeW FInAncIAl stAteMents

1 strategic & Financial Highlights 87 Independent Auditor’s Report
2 Business Segment Review 88 statement of significant Accounting policies
4 location & offices 96 consolidated profit & loss Account
6 chairman’s statement 97 consolidated Balance sheet
8 chief executive’s Review 98 statement of cash Flow
99 notes to the Group Financial statements
BusIness ReVIeW 137 statement of Value Added
138 Four-Year Financial summary
10 Report of the external consultant on 139 Five-Year Financial summary
the Board Assesment
12 Institutional Banking
14 Commercial Banking sHAReHoldeR InFoRMAtIon
16 Investment Banking
18 Retail Banking 140 notice of Meeting
20 Transaction Services 141 capital Formation History
22 products & services 143 e-mandate Form
23 It services 145 shareholder Information update Form
24 our people & culture 147 proxy Form
26 corporate social Responsibility designed and produced by Rare corporate design, london
28 Risk Management
coRpoRAte InFoRMAtIon www.rarecorporate.co.uk
GoVeRnAnce 149 corporate directory
71 directors, officers & Advisors

72 Board of directors
76 Management team
77 directors’ Report
82 directors’ Responsibilities & statutory
Audit committee Report this report is printed on 150gsm Fsc silk art paper.
83 corporate Governance the Forest stewardship council is a non-profit entity that supports environmentally appropriate, socially
beneficial and economically viable management of the world’s forests. Fsc independently tracks, traces
and identifies wood fibers from the forest through every step of the procurement, manufacturing and
printing process, confirming that each supplier in the chain follows rigorous controls, management and
reporting practices.
Access Bank Plc
Overview Financial Statements
Strategic & Financial Highlights Business Review
Governance
Shareholders’ Information
Corporate Information
At A Glance
2010 at a glance 2010 Performance highlights
— T he Group recorded Gross earnings Profit before tax

profit before tax of N16.1
billion in the financial
year ended December 31,
N91.1bn N16.1bn
2010, representing a 564%
+7% +564%
(2009: N84.98bn) (2009: N3.48bn)
increase over the previous
year.
— The strong return to Shareholders’ funds Profit after tax
N175.3bn N11.1bn
profitability was led by
Nigerian operations.
— 2010 saw gross earnings
from commercial banking

+4% +351%
(2009: N168.3bn) (2009: N4.40bn)
more than double.
— The Group Treasury
Customer deposits Loans and advances
business contributed
strongly to bottom line
profits. N487bn N432.8bn
+16% +16%
(2009: N439bn) (2009: N388.0bn)
Total assets Treasury bills
N804.8bn N35.9bn
+16% +109%
(2009: N693.8bn) (2009: N17.2bn)
Access Bank Plc 1

Business Segment Review
At A Glance
Access Bank Plc’s business model is structured

along five major strategic business segments,
namely institutional banking, commercial
banking, financial markets, retail banking
and transaction services.
Institutional The Institutional Banking division offers a full

range of services to multinationals, large domestic
Industry sectors covered
Cement & Flour
Banking corporates and other institutional clients.
• We strive to provide premium relationship
Financial Institutions
Food & Beverages
management to top tier corporate clients, Oil & Gas
while serving as an anchor to the value chain Telecoms
model of the Bank. Transportation & Utilities
• We also deliver corporate and structured
41% financial services to leading banks, insurance
companies, stock broking firms as well as
investment and asset management firms.
• Our focus is to add value by building long-
term relationships with our clients via a deep
understanding of their businesses and the
Contribution to Total Assets environment in which they operate. Results for this division
Page 13
Commercial The Commercial Banking division focuses on serving

all non-institutional clients within the value chain of
Target markets
Individuals
Banking the Bank’s large corporate customers.
• This is achieved through the distribution of both
Trading
Manufacturing
commercial and retail offerings as well as other Hospitality
structured local and foreign organisations with Schools/Educational
turnover in excess of N500 million. Institutions
• The division has chosen the value chain model as HNI/UHNI
its preferred approach to running the commercial Real Estate
banking business at this time. Bureau de Change
29% • Significant successes have been recorded with Security & Armory
the application of this strategy, showing the huge Asset Management
potential for growth in our business with more Information Technology
rigorous implementation. Transportation
Contribution to Total Assets Partnerships/Professional Results for this division
Page 15
2 Access Bank Plc

Business Review Shareholders’ Information
Governance Corporate Information
%
Growth Contribution to Total Profit 2009
Institutional Banking: Total (Loss)
+12% (N4.15bn) (N3.48bn)

Commercial Banking:
+662% N10.3bn
Investment Banking:
2010
+202% N8.02bn
Total Profit
Retail Banking:
+1116% N1.98bn N16.17bn
Financial The objective of the Financial Markets division is to

provide innovative finance solutions to meet the
Products offered
Treasury & Asset Management
Markets short, medium and long-term financing needs of
our clients.
Financial Advisory Services
Permanent/Long & Medium
• Our treasury group is at the forefront of fixed Term Finance
income and foreign exchange trading in Nigeria,
while our global financial markets group continues
to build core competence in structured finance
and advisory transactions.
28% • During the period under review, we were
consistently voted the most professional foreign
exchange trading bank in Nigeria, and our treasury
team, the most professional money market dealers
in a monthly poll conducted by the Money Market
Contribution to Total Assets Association of Nigeria. Results for this division
Page 17
Retail Banking The Products & Retail Banking division currently

serves over 500,000 customer accounts providing
Products offered
Personal accounts:
financial products and services to individuals and
small businesses in the value-chain of the Bank’s
savings, current, investment
corporate clients. Credit products:
• Our products and services range from standard loans, advances, mortgages,
to specialised savings, current and investment asset finance, small business
2% accounts.
• Others include credit products, including personal
loans, credit cards
loans, advances, mortgages, asset finance, small e-business:
business loans and credit cards. internet banking, mobile
• Our e-business products include internet banking, merchant services,
banking, mobile banking, merchant services and customised corporate
customised corporate solutions.
solutions Results for this division
Contribution to Total Assets
Page 19
Access Bank Plc 3

Locations & Offices
Overview
Nigeria We are currently one of the largest banks in

Contribution to Group
Nigeria and serve over two million customers
2010 from 148 branches. These are located in all major
109.3% commercial centres and cities across Nigeria, eight
other African countries and the United Kingdom.
Number of branches
110
Employees
1,317
Customer accounts
Burundi Côte D’ivoire Democratic Ghana
549,503 Republic Of
The Congo
BUJUMBURA
YAMOUSSOUKRO
KINSHASA
LAGOS ACCRA
Services offered Contribution to Group Contribution to Group Contribution to Group Contribution to Group
– Standard Savings Account 2010 2010 2010 2010
0.6% -11.1% -3.3% 8.04%

– Standard Current Account
– Solo Account
– Access Advantage
– Access Premier
– Mpower Biz (Platinum & Gold)
– Mpower Salary
– Campus Access Number of branches Number of branches Number of branches Number of branches
6 5 2 3
– Visa International Credit Card
– Visa International Debit Card
– Access Online
– Access Direct
– ATM
– Access Pay Employees Employees Employees Employees
114 121 70 108

– POS
– Auto Online
– Vehicle Fleet Finance
– Access Transfast
– Dollar Derivative Facility
(lcci and Dollar Usance) Customer accounts Customer accounts Customer accounts Customer accounts
4,465 8,000 1,010 3,000

– Bills for Collection
– Distributors Credit Program
– Telecoms Invoice Discounting
Scheme
– Corporate Current Account
– GEM Services offered Services offered Services offered Services offered
– Share Purchase Facility
– Current Account (Bif, USA, – Access PEL – Access Alerts – Savings & Current Account
– Cash Backed Stock Acquisition
Euro: Lodgment & Withdrawal – Access Advantage
– Asset Backed Stock Acquisition
– Term Deposit Account: – Access Project – Savings Account – Access Premier
– Call Deposits
– Time/Term Deposits Fortune Plus – Call Deposit – Current Account – Mpower Biz
– Treasury Bills – Savings Account: Kazoza Saving – Current Account – Bullion/Cash Services – Mpower Salary
– Banker’s Acceptances – Credit Facilities: Overdraft, Term – Solo Account
Loan, Time Loan, Importation – Savings Account – ATM – Access Online
– Bonds
– Foreign Exchange Lines, Documentary Credit – Call Deposit – VISA Card – Visa Card and ATM Services
– Internally Generated Revenue – Leasing – Treasury & Investment Services
– Visa Cards
– Fixed Deposit – Trade Finance
Collection
– Firs Collections – Diaspora – Cash Management
– Nigerian Immigration Service- – Transfer Facilities: Foreign – Lending Services
E-revenue Collections Transfers
– Non-oil Export Collections – Bank Guarantees: Letter Of
– Phcn Collections Credit, Term Loan, Bid Bond,
– Customs Collections Custom Bond, Performance
Bond, Advance Payment
Guarantee, Time Loan, Bills
Discounting
4 Access Bank Plc

Rwanda Sierra Leone The Gambia Zambia United

Kingdom
KIGALI
FREETOWN BANJUL
LONDON
LUSAKA
Contribution to Group Contribution to Group Contribution to Group Contribution to Group Contribution to Group
2010 2010 2010 2010 2010
1.7% -0.4% -0.7% 0.03% -1.22%

Number of branches Number of branches Number of branches Number of branches Number of branches
7 4 5 3 3
Employees Employees Employees Employees Employees
135 28 150 152 60

Customer accounts Customer accounts Customer accounts Customer accounts Customer accounts
6,890 8,593 16,640 5,505 1,079

Services offered Services offered Services offered Services offered Services offered
– Current Account Individual – Savings Account – Current Account – Personal, Business, Online and – Trade Finance Service
– Current Account Corporate – Current Account – Access Advantage Account Private Banking
– Standard Savings Account – ATM – Small Business Account – Commercial Banking
– Mpower Biz Account
– Solo Kiddies Account – Visa – Institutional, Commercial and – Property Loans
– E-Banking (SMS, Internet – Solo A/C – Call Account Internet Banking
– Access Premier – Private Bank
& Email) – Mpower Salary Account – Payments & Collections
– Foreign Operations & Funds – Access Advantage – Money Market Account – Treasury – Internet Banking
Transfer – E-statement – Savings Account – SMS/Email Alert – Current Account
– Central Clearing – Access Alert – Kiddies Save Account – Accesspay
– Credit Risk Management/ – Investment Banking – Visa Debit Card
– Notice Deposit Account
– Savings Account – N/I (Islamic) – Business Account
Remedial Asset – Commercial Banking – Credit Card
– Currency Trading/Treasury – Institutional Banking – Term Deposits – Mpower Biz – ATM
– Paying Tellers (Local & Foreign – Internet Banking – Access Premier Plus – Access Advantage and Premier
Currency – Collections Account – Solo – Savings Account
– Domicilliary Accounts – Standard Savings Account
– Standard Current Account
– Collection Domicilliary Account
– Call Account
– Matured Term Deposits – Fixed Deposit
– Domicilliary Account
Access Bank Plc 5

Chairman’s Statement
Welcome
Distinguished shareholders, it is with

great pleasure that I welcome you
to the 22nd Annual General Meeting
of our Bank. I will be presenting
to you a brief review of the major
developments that have taken
place in our local markets and in the
wider global economy in which our
Bank operates, as well as providing
you with a summary of the Bank’s
Mr Gbenga Oyebode, MFR performance for the financial year
ended 31st December 2010.
In 2010, the bright signs of economic recovery that began to appear Our Bank will divest fully from its two non-banking subsidiaries
at the tail end of 2009 were overshadowed by the possibility of namely, United Securities Ltd and Access Securities and Investment
yet another financial crisis triggered by sovereign debt concerns Ltd, and integrate the operations of its mortgage banking subsidiary,
in Greece, Spain, Ireland and Portugal. Emerging markets and Access Homes and Mortgages Limited into its Retail Banking division.
developing economies however continue to outperform the global The decision to exit our non-banking subsidiaries was taken following
economic growth index. In Nigeria, real GDP grew at 7.78%, a rigorous evaluation of the impact of the divestment on our long
outperforming the prior year’s growth rate of 6.69% and indications term performance objectives.
are that this growth momentum will be maintained in 2011 due
By opting to divest from our non-banking subsidiaries, we have
to high crude oil production levels and rising crude oil prices.
chosen to focus on our core commercial banking operations, which
However, inflation remained well above the Central Bank’s implied
account for over 98% of our earnings. In arriving at this decision,
target range of 9.0% – 9.5%.
consideration was given to the growing global and local concerns
The Nigerian financial system is on the path to recovery, largely due to regarding the regulation of universal banks and we found it prudent
the various initiatives introduced by the Central Bank of Nigeria (CBN) to be insulated from the regulatory challenges which universal banks
in response to the Nigerian banking sector crisis. will face in future.
Financial Performance In view of the measures of best practice that Access Bank has
This is our Bank’s first full year Profit and Loss Accounts since the undertaken in the past, the Bank is confident that its transition to
adoption of 31st December as our year end. The period witnessed operating under an international banking licence will be smooth
an appreciable level of macroeconomic stability due to the various and seamless. Our subsidiaries in Ghana, Rwanda, Zambia,
policies instituted by the CBN, enabling our Bank to record a profit and the United Kingdom continue to perform creditably whilst
before tax of N16.1 billion for the Group, a remarkable improvement the macroeconomic conditions in other countries hosting our
on our 2009 performance. operations, most particularly Cote D’Ivoire, have not been beneficial
to our business model. Going forward, the Board of Directors and
Dividend Management have established minimum performance targets for all
The Board of Directors is recommending a final dividend of 30 kobo our banking subsidiaries to ensure the future performance of each
per ordinary share, subject to appropriate withholding tax. This is in subsidiary is profit additive.
addition to the interim dividend of 20 kobo per ordinary share paid
Board of Directors and Human Capital Development
at half year 2010. This brings the total dividend per ordinary share for
During the year, Dr Dewunmi Desalu resigned from the Board of
the 2010 financial year to 50 kobo.
Directors. We are most appreciative of his contributions to the Bank
Subsidiaries during his period of service and wish him continued success in his
Following the Central Bank’s repeal of the Universal Banking endeavours. Our employees are the heart of our business, and we
Guidelines, Access Bank Plc has received the CBN’s approval, continue to improve on our ability to recruit the brightest people in
in principle, for its Compliance Plan to bring its operations into the industry and develop them through exposure to international
conformity with the provisions of Central Bank of Nigeria’s best practices. This helps to ensure that the Bank is able to sustain
Regulations on the Scope of Banking Activities and Ancillary Matters. its ability to create value for all its stakeholders.
6 Access Bank Plc

“Our Bank’s continuous

commitment to sustainable
fundamentals and strong
financial performance has
led to a return to profit”
Corporate Governance and Risk Management

Access Bank continues to ensure strong adherence to best Special Resolution
practices in corporate governance premised on the independence One of the tools the Bank uses in retaining and motivating its high
and separation of the Board’s supervisory responsibilities from performing employees are performance incentives. The Resolution,
the management framework. Our governance standards are not which you will find in the Notice of Meeting, would enable the Bank
limited to the requirements of local statutes and regulations. Your to establish an Employee Performance Share Plan, under which
Board of Directors has taken the initiative to adopt, in certain areas, units of the Bank’s shares will be awarded to eligible employees on
governance standards that are higher than required by local code terms to be approved by the Board of Directors. The approval and
and regulatory requirements. implementation of the proposed plan would increase the Bank’s
capacity to recruit and retain high performing employees.
Access Bank in 2010 became the first bank in Nigeria to fully adopt
International Financial Reporting Standards (IFRS) and has pioneered The Board believes that the Resolution contained in the Notice
the way for many of the other banks who are just beginning their of Meeting is in the best interests of shareholders and the Bank
implementation process in 2011. The road map developed by the unanimously recommends that you vote in favour of the Resolutions.
CBN requires banks to have implemented IFRS by the year 2012.
The Bank has also invested in people, structures and processes to Conclusion
take us to a functioning implementation of Basel II. During the Our sincere appreciation goes to our shareholders, customers,
financial year, we employed a highly respected Chief Risk Officer employees and other stakeholders for their continued support of the
bringing with him a wealth of experience while also ensuring that Bank, which has enabled us to record another year of very strong
all the key positions in enterprise risk framework are filled. We have performance. With your continued support, we look forward with
established a system that ensures an integrated view of risk and great excitement to successful years ahead as we work hard to
correlation/diversification benefits. enhance returns for shareholders while continuing in our pursuit of
the Quest for Excellence in our customer services and operations.
Growth Opportunities
One of our Bank’s strategic objectives is to rank amongst the top
three banking groups in Nigeria. The pursuit of this aspiration would
require the Bank’s expansion of its footprint either through the
pursuit of organic or inorganic growth strategies. An opportunity
currently exists in the context of the Central Bank of Nigeria’s
Banking Crisis Resolution Program for the Bank to pursue a MR GBENGA OYEBODE, MFR
business combination with another bank towards achieving our CHAIRMAN, BOARD OF DIRECTORS
growth aspirations. The Board of Directors is working closely with
Management to undertake such actions as may be necessary to
successfully implement this initiative. In line with international best
practices, the proposed business combination will be conducted
transparently and subject to necessary shareholders, regulatory and
judicial approvals.
Access Bank Plc 7

Chief Executive’s Review
I am pleased to report that our

year 2010 financial performance
places Access Bank Plc amongst
the leaders in the Nigerian Banking
Industry and more importantly our
continued emphasis on business
sustainability will ensure that our
renewed growth trajectory
is maintained.
Mr. Aigboje Aig-Imoukhuede
Global Environment Our customers have strongly embraced our ‘go to market’ strategy
We must give due credit to the effectiveness of the various macro resulting in robust growth of over 15% in both loans and deposits.
prudential initiatives instituted by the Central Bank of Nigeria (CBN) In Nigeria, our increased market share and significant reduction in
to stimulate economic growth as well as to ensure recovery of the risk expenses resulted in a phenomenal uplift in profit before tax
Nigerian banking sector. Furthermore, the CBN’s extensive reforms to N17.6 billion. Whilst our subsidiaries in Ghana, Rwanda, United
focused on elevating the practice of Risk Management, Financial Kingdom and Zambia performed well, Cote D’Ivoire and Congo
Management as well as Corporate Governance by Nigerian banks, performed poorly, indeed in view of the Cote D’Ivoire’s deteriorating
have effectively leveled the playing field enabling those financial macroeconomic conditions we increased our provisions for risk
institutions, whose business models are centered around sound asset impairments leading to lower Group profits of N16.1 billion.
banking principles, to grow their business profitability. The Board of Directors has proposed a 30 kobo dividend per share
in addition to the 20 kobo interim dividend, thus ensuring a strong
Year 2010 dividend yield to our shareholders in excess of 5%.
During the period under review, our Bank provided exemplary
leadership to others by being the first Nigerian bank to fully convert
Beyond 2010
its accounting systems and policies to comply with International
There are several lessons to learn from the recent global economic
Financial Reporting Standards IFRS. We also recruited a highly
crisis which has also brought to the fore a number of critical issues
regarded Chief Risk Officer to oversee the extensive investments
which are shaping and redefining Nigeria’s financial sector landscape.
the Bank has made in the area of risk management, particularly the
Our Board and Management have spent a considerable amount of
functional implementation of our Basel II compliant risk framework.
time reflecting deeply on these issues and their implications for your
In several other facets of our operations we have recorded Bank going into the future.
significant progress in our quest to attain world-class standards.
Most analysts are unanimous in the view that post crisis, Access Bank
These developments have not gone unnoticed by a wide range of
is in a significantly enhanced position amongst Nigeria’s 24 banks
stakeholders, with attendant goodwill and brand benefits.
when compared to its position before the financial crisis. However,
We continue to expand our market share of customer segments analysts are also quick to highlight the increasing importance of
whose risk profile is consistent with our moderate risk appetite; ‘scale’ as a key determinant of which Banks will rank amongst the
competition amongst banks for such business is quite keen, however industry leaders in the years to come.
the quality of our human capital, effectiveness of our banking In 2007, I shared with you our corporate aspirations for the 5-year
solutions and confidence engendered by the Access Brand have period ended 2012. Amongst our corporate objectives is the goal
combined to give us a winning edge over our peers. to rank among Nigerian’s top 3 financial service institutions.
8 Access Bank Plc

“The quality of our human capital,

effectiveness of our banking
solutions and confidence
engendered by the Access Brand
have combined to give us a
winning edge over our peers”
Our analysis convinces us that a significant increase in the scale of

resources available to the Bank is required for the fulfillment of our At the heart of everything we do, we will make our vision a
strategic objectives. reality and our mission a successful one. Together they form
We will utilise the opportunities arising out of CBN’s Banking the bedrock of our business:
Crisis Resolution Programme to pursue growth inorganically whilst
remaining focused on our existing organic growth game plan. Vision
To transform our Bank into a world-class financial services provider.
We are confident that the strong competencies we have built in-
house in the areas of mergers and acquisitions, together with the Mission
engagement of world-class advisers with whom we have in the past To go beyond the ordinary, to deliver the perceived impossible,
shared several successful business combinations, will enable in the Quest for Excellence.
us to overcome the challenges to come.
In my usual tradition, I extend on behalf of all my colleagues our
appreciation to our customers, shareholders, regulators and other Our Core Values:
stakeholders who continue to support our Quest for Excellence. I
Excellence
would especially like to thank all our employees who continue to
We strive to attain and exceed the highest possible standards
demonstrate the quest for high performance and the hunger to
through our passionate and painstaking attention to detail.
excel.
Most especially I give thanks to the Almighty for all He has made Ethics
possible. Our operations are transparent and always comply with
regulations, while decisions are based purely on business interest.
God bless. Trust
We have total confidence in one another. We will work tirelessly
to earn the faith, loyalty and confidence of our customers.
To this end, we will always deliver on contracts, agreements,
undertakings and assurances.
Teamwork
MR AIGBOJE AIG-IMOUKHUEDE We hold the interest of the team above those of the individual,
GROUP MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER while showing mutual respect for all employees and sharing
information throughout our organisation.
Passion for customers

Customers always come first. We develop a deep understanding
of our customers, approaching them with a positive “can do”
attitude and responding creatively to their needs.
Continuous learning
We are dedicated to continuous growth and career development.
This principle is applied at all levels and across all functions.
Access Bank Plc 9

Report of the External Consultant on the Board Assessment
Accenture
2nd Floor, Citibank Building, 27 Kofo Abayomi Street
P.M.B. 80085, Victoria Island· Lagos, Nigeria
Tel. +234 1 2707100· Fax: +2341 2707111
www.accenture.com
Friday, 18th March 2011
The Chairman
Access Bank Plc
Plot 1665, Oyin Jolayemi Street
Victoria Island, Lagos
Dear Sir,
REPORT OF THE EXTERNAL CONSULTANT ON THE BOARD ASSESSMENT OF

ACCESS BANK PLC
In compliance with the Central Bank of Nigeria (CBN) guidelines on the ‘Code of Cor-
porate Governance for Banks in Nigeria, Post Consolidation’ (the CBN CODE) we have
conducted the Annual Board Performance Assessment for Access Bank for the year
ended December 2010.
Our assessment focused on Access Bank’s compliance with the basic principles that
promote sound corporate ethics, accountability and transparency and standards set by
the CBN code.
The composition of the Board of Directors is in compliance with the requirements of

the CBN Code. There is clear separation of roles between the position of the Chairman
of the Board and the Managing Director/Chief Executive Officer. Board Committees
are properly constituted and there is a documented term of reference of each
subcommittee. The Chairman of the Board is not a member of any Board Committee.
Board members are knowledgeable in business and financial matters and understand
their fiduciary responsibilities as directors and roles in providing financial oversight and
enhancing shareholder value. The Board oversees and is involved in monitoring financial
and strategic performance of the Bank. There are appropriate audit structures, credit
processes, Risk Management Framework and Succession Planning Policy in compliance
with CBN code.
Following our assessment, specific recommendations in respect of areas for further im-
provement of the Board’s current good performance have been presented to the Board.
Yours sincerely,
ACCENTURE
Toluleke Adenmosun
Senior Executive, Financial Services
10 Access Bank Plc

Accenture
2nd Floor, Citibank Building, 27 Kofo Abayomi Street
P.M.B. 80085, Victoria Island· Lagos, Nigeria
Tel. +234 1 2707100· Fax: +2341 2707111
www.accenture.com
Friday, 18th March 2011
The Chairman
Access Bank Plc
Dear Sir,
SUMMARY REPORT ON CORPORATE GOVERNANCE
We have reviewed the corporate governance arrangements at Access Bank Plc with regards
to the Central Bank Code on Corporate Governance for Banks, Post Consolidation and
find the Bank materially compliant with the requirements of the Code.
BASIS OF REVIEW
The Bank’s Memorandum and Articles of Association, Board Terms of Reference, Board
papers, minutes of Board meetings, Risk Management Framework and Succession
Planning Policy were reviewed for compliance and we also conducted interviews with
principal officers of the Bank.
We examined the Bank’s audit structures and credit processes as well as assessed
directors’ understanding of their fiduciary duties and roles in providing financial
oversight and enhancing shareholder value.
The review was conducted in February 2011.
SUMMARY OF FINDINGS
Based on our review of available documentation and after discussions carried out with
the principal officers listed above, Access Bank has been found to be compliant
with the requirements of the CBN Code on Corporate Governance.
The conclusion from our analysis is that the non-executive as well as executive directors
of the Bank fully understand their fiduciary duties and roles in providing financial
oversight and enhancing shareholder value.
Please find the full details of our findings and recommendations in respect of areas that
require attention attached.
Yours sincerely,
ACCENTURE
Toluleke Adenmosun
Senior Executive, Financial Services
Access Bank Plc 11

1
Projects
1 Industrial Cartons Limited. In line with 2

its objectives to aid the manufacturing
industry in the country, Access Bank
granted Finance Lease Facility to the
tune of N1.44bn which was used to
finance the acquisition of a corrugated
carton production line. The automated
production line which has been installed,
has a production capacity of 2,200 tonnes
monthly. Address: Acme Crescent, Off
Acme Road, Agidingbi, Ikeja.
2 Nestle Nigeria Plc. Access Bank Plc

secured a term loan of N2Bn to finance
one of the key investment plans of Nestle
Nigeria in Milling and Malting plant. The
plants were constructed at the company’s
premises in Agbara and would aid the
increase in milling and malting capacity of
the company and its output in meeting
the needs of its consumers. Address: Km
32, Lagos Badagry Expressway, Agbara 3
Industrial Estate, Agbara, Ogun State.
3 Dangote Cement Plc. Address: (Obajana

Plant); Kabba-Lokoja Road, Obajana, Kogi
State. Lagos Office: 1, Alfred Rewane
Road, Falomo, Ikoyi, Lagos.
12 Access Bank Plc

Institutionial Banking Business Review
Governance
At a glance 2010 Performance highlights
The Institutional Banking division serves Institutional Banking division has experienced
N17.8bn as the anchor of the value chain strategy/

model of Access Bank. The division
provides a full bouquet of products and
financial services through the various
and highly qualified professionals with deep
industry knowledge to run the business in the
targeted sectors. Despite the difficult operating
environment in the year, we maintained a close
e-channels and branch network of relationship with our customers.
the Bank.
The highlight of our financial performance is
Gross Earnings 2010:
N17,753,000,000 -59% The division is structured along the key
sectors in the economy the Bank has
shown below:
chosen to play in and has built competence

in over the years. The customers we serve
N329.7bn are drawn from key sectors in the economy

such as; Oil & Gas, Telecommunications,
Financial Services, Food & Beverage,
Cement, Transportation and Household
Utilities. Good understanding of our
chosen sectors and proven successes
over the years have resulted in building
-8%
Total Assets 2010:
N329,713,000,000
deep and long lasting relationships with
customers in our target market and
enhanced our ability to provide bespoke
N4.15bn
products & services as value adding
solutions to their banking needs.
-12%
Profit before tax 2010:
N4,149,000,000
2010 2009 Dec 2009
INSTITUTIONAL BANKING INSTITUTIONAL BANKING vs. Dec 2010
Millions Millions %
Gross Earnings 17,753 43,649 -59%
Interest Expense (12,415) (25,735) -52%
41% (Loss)/Profit on Ordinary Activities Before Tax

Assets
(4,149)
329,713
(4,722)
357,910
-12%
-8%
Liabilities 174,339 173,252 1%
Net Assets 155,374 184,658 -16%
Institutional Banking division recorded a reduced Hence, in 2011 the Institutional Banking division
Loss before tax for the 12 month financial strategy continues to be superior customer
Institutional Banking year ended December 2010. Loss before tax service via a relationship team;
Contribution to total profit decreased from N4.7 billion in December
— F ocused on the customers’ value chain
2009: -127% 2009 to a Loss before tax of N4.12 billion
meeting the needs of existing and new
in December 2010. This represented some
customers through good grasp of their
improvement as the division recovered from
business
the spike in loan loss expense, reflecting the
challenging and difficult operating environment — S igning of new investment grade corporate
for the division and its clients. However, the customers for the Bank
macro prudential initiatives instituted by the
Central Bank of Nigeria led to an improvement —A
ggressive loan recovery drive.
in the volume of transactions in the second half
of the 2010 financial year, and the impact of
the continued business growth would be more
visible in 2011.
Access Bank Plc 13

1 2
1 2
Projects
1. Obax Worldwide Limited. Sequel to 2. Everyday Group of Companies. This project has received several
the Federal Government’s resolve to Everyday Group of Companies is engaged commendations as shown in the level
minimise the environmental hazards in supermarket and departmental stores of business volumes being carried out
from oil production while optimising business. It runs the ultra modern shopping there. Company’s daily sales grew from
the gains, a duo objective is to curb the mall called Everyday Emporium. just about N5 million to over N15 million.
flaring of gas and boost power supply. The shopping mall was successfully
It commenced an expansion of its
Consequently, the Nigeria Petroleum commissioned in March 2010.
supermarket franchise in response to an
Development Company (NPDC) embarked increased patronage occasioned by the
on the leasing of an Early Production recent beautification project by the Rivers
Facility (EPF) and a Gas Handling Facility State Government within Port Harcourt
(GHF) for Oredo flowstation. which led to the displacement and eventual
The project is intended to raise the total closure of a number of supermarkets.
capacity to 15,000 BODP and 100MMscfd Access Bank Plc provided a total of N950
from 5,000BOPD and 10MMscfd of gas million to refinance the construction and
production respectively. Access Bank completion of the ultra modern shopping
provided facilities totaling N500 million complex/retail centre located in GRA
to part finance the execution of the first Port Harcourt.
phase of a $33 miillion contract awarded
to Obax Worldwide Limited by the Nigeria This new shopping mall consists of a
Petroleum Development Company (NPDC) twin tower structure, three floors with
for the supply, installation, operation warehouse, office space and 36 room
and maintenance of an Early Production en-suite living quarters in the penthouse.
Facility (EPF) at the Oredo flowstation in The shop floor is a massive open space
Edo State. equipped with escalators and modern
shop layout that is the first of its kind in
Obax Worldwide is executing the project in the city of Port Harcourt. .
collaboration with a well known company
in the United States, Pacific Process System Total cost for the construction of this
and has achieved 98% completion. shopping mall is approximately N1.2 billion.
14 Access Bank Plc

Commercial Banking Business Review
Governance
The Commercial Banking division serves —C ommercial Banking provided products and
N55.59bn businesses, suppliers, distributors of

large corporate organisations and public
sector (Federal and State Government
services to suppliers, distributors and other
businesses with an annual turnover below
N5 billion
ministries, agencies and parastatals, wealth — P ublic Sector catered to Federal and State
management). The division offers a full Government ministries, agencies and
range of banking services and products parastatals
to meet the needs of the customers by
N55,591,097,000 +147% following the value chain of the customers. — ealth Management focused exclusively
W
on high net-worth individuals by providing
Despite the changes in the operating bespoke banking services.
environment, we have remained
N231.6bn
The customer segments, in line with the value
focused on our strategy driven by the chain model of the Bank, served customers
self sustaining value chain model. The of large corporate customers in the Bank’s
unusual changes therefore have resulted chosen target markets/sectors: Oil & Gas,
in opportunities for the bank to sign Telecommunications, Cement, Financial
on new customers, and increase market Institutions, Personal Care, Food & Beverages.
share of its customers’ business.
The highlight of our financial performance is
Total Assets 2010:
N231,625,398,000 -11% During the financial year, the Commercial
Banking division redefined its structure and
shown below:
adopted a new organisational model that

was based on customer segments;
N10.31bn
N10,310,000,000 +662%
2010 2009 Dec 2009
COMMERCIAL BANKING COMMERCIAL BANKING vs. Dec 2010
Millions Millions %
Gross Earnings 55,591 22,504 147%
Interest Expense (7,279) (1,381) 427%
(Loss)/Profit on Ordinary Activities Before Tax 10,293 (1,833) 662%
Assets 231,625 259,071 -11%
Liabilities 361,496 264,997 36%
29% Net Assets (129,871) (5,925) 2092%
The Commercial Banking division more than the economy and industry entered the recovery
doubled its gross earnings in the financial year mode. Credit creation improved as a result of
ended, 2010. This combined with successful various policies instituted by the Central Bank of
Commercial Banking
efforts to recover provisioned assets ensured the Nigeria to drive growth through lending to the
Contribution to total profit
segment returned to strong profitability. Profit real sector of the economy.
2009: -49%
before Tax increased significantly from a Loss In 2011, the operating environment will still be
before Tax of N1.8 billion in December 2009 to challenging, however the Commercial Banking
a Profit before Tax of N10.3 billion in December division adhering to best practice will enlarge
2010. The division returned to profitability market share of its customers businesses. The
as a result of the sustainable business group will embrace the values of efficiency,
model employed by the Bank. There was an transparency, accountability, discipline and
improvement in the operating environment as fairness to deliver an improved result in 2011.
Access Bank Plc 15

1
HIGHLIGHTS
2 1 Financial Markets. We have

renewed optimism for a rebound in
the financial markets in 2011.
2 Working for Africa. One of our
objectives is to increase the existing
financing channels for the private
and public sectors through access
to local and international Markets,
Trading, and Asset Management.
16 Access Bank Plc

Financial Markets Business Review
Governance
The Financial Markets division provides the first bank to contribute market quotes for
N11.7bn specialised financing and investment

solutions, trading in Fixed Income and
Currency products for our customers.
These functions are carried out through
wide-ranging instruments across sub-Saharan
African countries on the Bloomberg Professional
Software®.
Corporate Finance Group
the Treasury Group and the Corporate The operating performance for the Corporate
Finance Group. Finance Group in the year 2010 was limited
by several challenges, which include the
N11,682,000,000 -45% Access Bank Treasury Group
The Treasury business contributed strongly to global financial meltdown, stunted economic
bottom-line profits. Within a dynamic, market- growth within the sub-Saharan African region,
driven environment, our teams work closely unfavourable economic indicators (interest rates,
N224.7bn with corporate customers, pension funds, and FX volatility and inflation) as well as capital
governments to deliver superior currency and market downturn, among others. Our project
fixed income solutions tailored specifically for finance/on-lending segment was particularly
their requirements. The Treasury Group focuses affected by the general liquidity squeeze in the
on structuring risk management solutions to financial sector, which made Banks unwilling
help mitigate interest rate and foreign exchange to lend to viable projects on a long-term basis.
risks for the Bank and its customers. Operating Funds received from development finance
Total Assets 2010:
N224,720,000,000 +394% at the cutting edge of financial services, the
Group is widely acknowledged as a market
institutions were left largely unutilised or
partially utilised. Opportunities for syndications
leader in the Treasury space as evidenced by were also limited during the year 2010.
N8.02bn
its ranking in the monthly polls conducted by We have renewed optimism for a rebound in
the Financial Markets Dealers’ Association. the financial markets in 2011, as a result of
We have demonstrated capability to enhance various measures being put in place by the
the trading liquidity in various instruments as Central Bank of Nigeria, the recovery of
we executed over 10% of the total secondary sub-Saharan Africa from the global financial
market bond transactions conducted in Nigeria crisis, sound economic policy implementation
in 2010. We also received acknowledgement as and favourable commodity prices.
+202%
N8,021,742,900
2010 2009 Dec 2009
INVESTMENT BANKING INVESTMENT BANKING vs. Dec 2010
Millions Millions %
Gross Earnings 11,682 8,041 -45%
Interest Expense (1,184) (695) 70%
28% (Loss)/Profit on Ordinary Activities Before Tax
Assets
8,022
224,720
2,666
45,509
208%
394%
Liabilities 51,596 21,814 137%
Net Assets 173,124 23,695 631%
During the 12 month period ended 31 In 2011, we will continue to build on the
December 2010, Investment Banking division platform for delivering exceptional value to our
was able to sustain and increase profit before stakeholders and to increasing our client base.
INVESTMENT Banking tax by 202% from 2.67bn in December 2009 to
Contribution to total profit
8.022bn in December 2010. The division held
2009: +172%
on to its comparative advantage of creating
exceptional value to its clients.
Access Bank Plc 17

1
HIGHLIGHTS
3 1 ATMs. Migration of more cash 3 Mulit-channel platforms.

transactions to self-service ATMs. Our innovative corporate payment
solutions such as Access Pay ease
2 E-banking channels. Our state- transactions and provide a multi-
of-the-art multi-media customer channel platform for the collection
contact centre continues to grow of revenue/receivables for our
and serve its customer base. clients.
3 3
18 Access Bank Plc

Retail Banking Business Review
Governance
The Products & Retail Banking division Our strategy revolves around exploiting the
N5.79bn provides a wide range of products

and services to employees and major
shareholders of corporate organisations,
small businesses and customers of large
value chain of Access Bank’s large corporate
clients by offering specialised products and
services tailored to meet their needs. The division
benefits from the strength of the Institutional
corporate organisations. The organisational and Commercial Banking divisions, e-banking
model for the retail banking division is channels, state-of-the-art multi-media customer
structured along three broad customer contact centre and the branch network of the
Total Revenue 2010:
N5,788,000,00.0 -42% segments; Bank to grow and serve its customer base.
— E mployees and major shareholders of The highlight of our financial performance is
corporate organisations (from medium to shown below:
N12.6bn high income professional within an annual

income bracket of N1 million to N35 million.
— Small businesses independently owned and
operated by an individual or a group of
individuals, with no more than a hundred
(100) employees and an annual sales turnover
between N25 million and N500 million.
Total Assets 2010:
N12,608,000,000 -46% — Customers of large corporate organisations;
buyers or users of products of the corporate
organisation.
N1.98 bn
+1115%
Profit before tax2010:
N1,979,000,000
2010 2009 Dec 2009
RETAIL BANKING RETAIL BANKING vs. Dec 2010
Millions Millions %
Gross Earnings 5,788 9,926 -42%
2% Interest Expense
(Loss)/Profit on Ordinary Activities Before Tax
(655)
1,981
(2,428)
163
-73%
1115%
Assets 12,608 23,504 -46%
Liabilities 35,409 59,362 -40%
Net Assets (22,802) (35,858) -36%
During the financial year ended 31 December 2011. We will continue to stay close to our target
2010, the Retail Banking division recorded market, increase market share of our customers’
1115% growth in PBT. The significant increase businesses and create new relationships through:
RETAIl Banking was as a result of enhanced understanding and — Increasing customer usage of alternative
Contribution to total profit application of the Bank’s value chain approach channels (internet, mobile, telephone banking
2009: 4% to its target market. The performance of the services, migration of more cash transactions
division was buoyed by the Bank’s elaborate to self-service ATMs and POS etc)
Enterprise Risk Management framework — T he push of our innovative corporate
(resulting in better loan quality for the division) payment solutions (Access Pay) to ease
and the deepening of our relations to harness transactions and provide a multi-channel
inherent opportunities. platform for the collection of revenue/
We see tremendous opportunities in our receivables for our clients
Retail Banking division and have made various — L everaging competences and capabilities in
significant investments around risk management our subsidiaries, external alliances as well as
capacity and product development all geared other Strategic Business Units.
towards an agressive retail expansion drive in
Access Bank Plc 19

HIGHLIGHTS
• The Transaction Services

Division is central to the fulfillment
of Access Bank’s promise of
excellent service to its clientele
through delivery of world-class
service and creation of exciting
customer experience.
20 Access Bank Plc

Transaction Services Business Review
Governance
Revenue 2010 Performance highlights
The Transaction Services division is central Tier 2, which comprises of the Bank’s Corporate
to the fulfillment of Access Bank’s promise and Large Commercial customers who typically
of excellent service to its clientele through have direct business relationships with the Tier
delivery of world-class service and creation 1 clientele. High Networth and Private Banking
of exciting customer experience. customers are also categorised as Tier 2. Further,
The division’s value proposition can be the customer engagement model covers the
summarised as Quality of Service Delivery, Bank’s smaller commercial and individual clients,
Quality of Process Execution and Efficiency who constitute Tier 3. This tier is typically made
of Operations. The division comprises of the of entities and persons with direct business or
following groups: Central Processing Centre, personal relationship with entities in Tiers 1
Global Trade, Branch Services, International and 2.
Operations and Total Quality Management. The engagement model is designed to
The division is also the vehicle by which the Bank facilitate effective management of customers’
mitigates most of the operational risks in the expectations and resource dedication for
Corporate
FX Revenue 30% Bank’s activities in line with organisational plan. actualisation of institutional objective of excellent
Handling Charge 9% As part of its alignment with the Bank’s service and differentiated offerings to customers.
Commission on Payment Mandates 2% corporate objectives and those of other business The actualisation of this objective largely rests on
Float Income 2% divisions in the Bank, the Transaction Services the broad knowledge base and professionalism
Trade Services 57% Division has in place relationship models of the Bank’s employees and their commitment
for engaging the different categories of the to one of the core institutional values: Passion
Bank’s customers. At the core of the customer for Customers, for which key performance
engagement relationship model are select indicators have been developed and measured
Institutional and Public sector clients, who for improvement.
constitute Tier 1. This category is followed by
PAYMENT & COLLECTIONS: OPERATING UNITS:

Branch Collections Branches
Implant Services Global Trade
Cash and Cheques Pick-up Service Card Services
Access Revenue and Utility Collections ATM Support and
Remittance Channels
Access Direct Debit Channels and Automation
AccessNEFT Cash Management
RTGS Funds Transfer
Standing Instruction
Local Correspondent Banking Relationship RETAIL PRODUCTS:
Corporate Domiciliary Account Mpower Salary/Vendor Payments
Current Account Corporate Mpower Current Account
RETAIl
Call Account Savings Account
Handling Charge
Fixed Deposit Current Account Individual
Western Union Commission
Commission on Bank Drafts
Visacard Corporate Investment Savings Account
Commission on Cheque Book Foreign Funds Remittances Domiciliary Account
Commission on Funds Transfer Pensions Disbursement
Commission from other Payment TRADE FINANCE: Telegraphic Transfer (Local)
Form M Processing Foreign Funds Remittance
Letters of Credit Credit Card
Bills for Collection Debit Card
Form NXP Processing
Shipping Documents Handling
Trade Finance
Invisible Trade Payments
Advisory Services
Offshore Guarantees
Quarterly Trade Digest (Business Intelligence)
Access Bank Plc 21

Our Products & Services
Products and services

RETAIL PRODUCTS TRADE FINANCE PRODUCTS
1 Standard Savings Account 1 Dollar Derivative Facility (LCCL and Dollar Usance)
2 Access Advantage Account 2 Bills for Collections
3 Solo Account
4 Standard Current Account e-BANKING PRODUCTS
5 Access Premier Account 1 MoneyGram
6 Mpower Biz Account 2 Campus Access
7 Mpower Salary Account 3 Visa International Credit Card
8 Mpower Executive Account 4 Access Mobile
9 Mpower Corporate 5 Access Online
10 Auto-Online 6 AccessDirect
11 Vehicle Fleet Finance 7 Access Prepaid Card
12 GEM (Gender Empowerment) 8 Access Automated Teller Machines (ATM)
13 Investment Savings Account (Target Savings) 9 Access Point of Sale (PoS)
10 Access Debit Cards
FINANCIAL INSTITUTION 11 Access Pay
1 Cash-backed Stock Acquisition Facility
WEALTH MANAGEMENT PRODUCT
TREASURY PRODUCTS 1 Safe Custody
1 Treasury Bills
2 Bankers Acceptances CREDIT PROGRAMS
3 Commercial Papers 1 Share Purchase Lending
4 Treasury Bonds 2 Stockbrokers Credit Program
5 Fixed Rate Deposit 3 Direct and Indirect Exposures to Banks and Discount Houses
4 DAUE Credit Program
COMMERCIAL BANKING PRODUCTS 5 Invoice Discounting
1 Guaranteed Asset Backed Investments (GAINS) 6 Cash Collaterised Lending
2 Trade Receivable Forfaiting Products 7 Facility Upgrade Support Scheme
3 Real Estate Investment Trust Scheme (REITS) 8 Advance Payment Guarantee Scheme
4 Collaterised Mortgage Obligation (CMO) 9 SME Short And Long Term Support (SME SALTS)
10 Staff Co-operative Lending Scheme
COLLECTIONS AND PAYMENTS PRODUCTS
1 Pension Disbursement
2 Access Revenue & Utility Remittances
3 Access Branch Collections
4 Access Implant Services
5 Access Direct Debit
6 Access NEFT
7 Access Standing Instructions
8 Bills and Check Pick-ups
9 Salary/Vendor Payments
10 PHCN Online
22 Access Bank Plc

IT Services Business Review
Governance
Access Bank has a robust Information Technology (IT)

system that enables it to effectively support Access
Bank Group’s business strategy for business growth
and sustainability.
In 2010, key automation projects were successfully implemented — Successful automation of our Global Trade business. This
which resulted in business optimisation and delivered competitive platform automates the Global Trade process bringing about
advantage for our business. A strategic approach utilised improvements in responsiveness to customers, process quality and
engendered the reduction of the environmental impact of our risk management. A customer-facing portal to enable customer
technology systems. self service in the comfort of their offices, with straight through
As a result, we have been able to achieve: processing and transaction tracking.
— Business continuity — Successful delivery and implementation of our suite of industry

leading integrated payments, collections, cash management and
— Process efficiency and cost reduction payroll solutions for our clients. These solutions are integrated
— Increased revenues and profitability into our customer’s systems to provide efficient and cost effective
bulk payments, collections and reporting capabilities, helping
— Robust governance and service excellence customers integrate their payments and collections value chain.
— Environmental sustainability. As part of the continued significant investment in core technology
in the Bank, our state of the art Data Centre was launched in 2010.
One of the most sophisticated Data Centres in Financial Services in
During 2010, the following automation initiatives were successfully Africa; it provides a high availability platform for all of our IT services
delivered: and has been built to sustain our Bank’s growth into the future.
— Automation of the front, middle and back office Treasury As part of our service to Nigeria and the financial community, we
processes. This has brought about significant improvements in championed the adoption and implementation of the International
efficiency, accuracy, controls and significantly improved capability Financial Reporting Standards (IFRS) in Nigeria, active participation
to effectively serve our customers. and leadership in shaping the electronic payment services and the
— As a key development of our Enterprise Risk Management shared service initiative of Central Bank of Nigeria.
Framework, automated Asset and Liability and Market Risk The Bank continues to develop its enterprise architecture and
applications were implemented. These applications have strategy for IT enabled business transformation to enable
transformed the Bank’s ability to take an integrated and sustainable business growth for 2011 and into the future. As
enterprise approach to risk management. A comprehensive Risk part of this strategy, it is now poised to overhaul its core banking
Management Dashboard also provides Management with up to application in 2011 with Oracle Corporation’s latest FLEXCUBE
date information of business performance across all risk categories. universal banking platform, further assisting our Bank to
effectively leverage technology into the future.
Access Bank Plc 23

Our People & Culture
People are the core of Access Bank’s identity as

a responsible organisation. Our human resource
management practices are designed to create an
inclusive work environment that accommodates the
needs of each individual employee.
We encourage a sense of ownership in all aspects of our business, Recruitment and talent management
develop requisite professional and ethical behavioural standards, As a merit-driven organisation, Access Bank is committed to providing
deliver superior client service, embrace sound financial discipline and equality in employment for all levels of staff. We have put a number of
recognise and reward good performance. Our objective is to have global processes and programmes in place to capture and develop talent
well-motivated staff that experience career satisfaction and take pride from graduate entry to the most senior levels of the organisation.
in working for a respected organisation that offers progressive career At entry-level positions, we are interested in young, energetic, result-
development at an individual level. oriented and highly intelligent individuals with a proven passion for
joining a team of driven and high performing professionals. Their
career journey begins with four months’ intensive training at the
Nanno Kleiterp,FMO Chief Executive Officer and other FMO Senior Executives with
Banking School of Excellence where our stars are identified. This
Joyce Dimkpa, one of the Bank’s Key Talents. She’s the 4th Access Bank employee to helps to reinforce the culture of Access Bank and ensures our people
undergo a one-year full time secondment to the FMO. develop the capability needed for business sustainability.
24 Access Bank Plc

Our Values: Excellence, Ethics,

Passion for customers, Teamwork,
Trust and Continuous learning
At the experienced hire level, we look for ambitious, self motivated Working with others
individuals with leadership qualities and capabilities, inspired and During the 2010 financial year, Access Bank partnered with leading
ready to harness their potential in order to consistently exceed universities and international organisations, such as AIESEC and the
customer expectations. British Council to create a pipeline for entry level talent.
Recruitment is achieved via a web based e-recruitment portal which
Amongst our partnership initiatives were the following:
provides a platform for equality and transparency throughout the
process. At the Access Bank School of Banking Excellence, the 1 Conducting campus recruitment for final year undergraduates
performance of each trainee is set against clear and objectively 2 Organising career counselling and a Career Day for third-year
defined benchmarks. The level of performance against these undergraduates in all partnered universities
benchmark(s) determines the trainees’ absorption into the
organisation and subsequent performance evaluation. 3 Presenting Access Bank Awards to the best graduating students
in the partnered universities.
Getting the best from our staff In support and service of our country Nigeria and to help achieve
The Human Resources Group at Access Bank in 2010 initiated, organisational objectives, Access Bank seconded a total of four
implemented and supported the following programmes to enhance employees to government ministries and establishments:
employee productivity:
— A Manager to the Ministry of Finance as a Special Assistant to the
Minister of State Finance
1 STI (Short Term Incentive): The Bank engaged Oliver Wyman
Consulting Services to conduct a process improvement programme — A Manager to the Budget Office as a Special Assistant
to assess the efficiency of key processes in the Bank and also — Most recently, two managers (one Senior Manager who is an
evaluate our strategy and overall operating model. The objective expert in Branch Expansion and one Assistant Manager from
was to manage cost and improve productivity associated with the Corporate Communications department) to the Securities
the minimum hurdle rate of staff. Part of this was simplifying key Exchange Commission (SEC). The Commission is currently
performance indicators in order to set clear goals, another factor rebranding its corporate identity and architectural structure
was the uncapping of our performance bonus in profit which and needed a specialist with deep expertise in the field. Access
drives our employees’ productivity. staff were seconded to the Commission with the intention of
2 Revision of our Orientation Programme for managers and replicating the formidable positioning of the Access Bank and
above: To equip our line supervisors and business leaders with structure in the repositioning of the Commission’s brand. At the
the necessary tools and an understanding of our culture, the Bank same time, the SEC Director was recognised by Access as able
revised its global employee induction programme for managers to benefit our architectural structure and position our brand
and above to improve their learning and skills development. favourably within the industry.
Programmes were initiated during the course of the 2010 financial The combination of these people-based initiatives have positioned
year to drive up the deposit volumes of our market-facing business Access Bank as an employer of choice, redefined its performance
operations. matrix and delivered value to stakeholders in a responsible manner.
3 Exchange Programme with FMO: FMO is the entrepreneurial
development bank of the Netherlands. Annually, we second one
staff member to FMO for a year’s work experience to enhance staff
capacity. Currently we have a Senior Manager on secondment to
FMO in The Hague.
4 Training (international training and e-learning): Increasingly,
our focus is on developing competencies to build a more
sustainable organisation. Addressing long-term sustainability issues
will require different skillsets and ways of thinking. As part of a
bid to enhance our employees’ capacity, many of our staff were
sent for international training such as the Chartered Institute of
Personnel and Development. Our employees also achieved 89,791
training hours through our e-learning platform.
Access Bank Plc 25

Corporate Social Responsibility
Building a Sustainable Business
At Access Bank Plc, we recognise that responsible

business practice is fundamental to our long-term success.
Our approach to corporate social responsibility (CSR) is versatile,
as we believe it must be. In 2010, to ensure its continued relevance,
we undertook a rigorous process to comprehensively review our
CSR strategy in line with global trends and developments. As a
result, the Bank’s CSR strategy is currently implemented through
a two-pronged approach of responsible business practice and
community investment.
Responsible business practice — Reputed as a ‘Bank of Best Practice’, Access Bank has
Access Bank’s responsible banking philosophy promotes financial commenced the strategic integration of environmental and
growth and enhances sustainable social and environmental causes social (E&S) risk management considerations into its business
across a range of stakeholder groups. The Bank’s responsible operations. The review takes all significant E&S issues into
business practice is reflected in all aspects of its business operations consideration while ensuring that our business operations do
which include, but are not limited to, the following: not degrade the environment or cause social harm. Through this
project, Access Bank achieved the following:
Economic development and advocacy: The Bank achieves
this through establishing linkages with local and international — Developed specific E&S policies for sectors such as Oil & Gas
governmental, non-governmental and private organisations of and Cement which have the greatest impacts on E&S risks
repute to provide cutting-edge thought leadership and develop an — Reviewed and aligned E&S policy and procedures with
innovative business approach to societal development. international best practice standards
Gender and small and medium enterprise (SME) finance: Access — Developed a risk management toolkit that will assist the
Bank aims to create equal financial opportunities through its support Bank in screening projects to identify potential E&S risks;
for new and/or emerging businesses. This promotes financial growth determine appropriate level of E&S due diligence required
while enhancing social and environmental causes. for projects and integrate E&S policy into existing credit
Environment: Core to our responsible practice is our support for processes.
global sustainability efforts at making business operations more
conducive for individuals and the environment. Community investment
With an ongoing commitment to appropriate 1% of annual profits
Treating customers fairly: Through this practice, we aim to build and
in support of charitable investments, the Bank actively seeks to
maintain sustainable, long-term relationships with our customers.
improve the affairs of host communities. It is noteworthy that
Employee and partner relations: This enables the Bank to create an despite the difficult operating environment in 2010, Access Bank
engaging and inclusive work environment while also developing new did not curtail its commitments to social investments. Access Bank’s
business opportunities through CSR and sustainability initiatives. community investment is conducted through strategic sponsorships
In 2010, Access Bank’s innovative business approach to societal and donations; partnerships and employee volunteering.
development was achieved through the following initiatives:
Sponsorships and donations
— Access Bank contributed significantly towards the adoption of At Access Bank, we also believe that Africans should take
the International Finance Reporting Standard (IFRS) in Nigeria. responsibility for the development of Africa. To this end, the Bank
To this end, the Bank organised an IFRS International Conference has taken a significant partnership step with the Global Fund by
aimed at preparing Nigerian banking industry stakeholders for contributing the sum of US$1 million to fund Global Fund’s ‘Gift
the successful adoption of the IFRS by 31 December, 2012. From Africa’ Project. This will be used to implement various strategic
projects to combat HIV/AIDS, TB and malaria across Africa.
Partnerships
Notable projects include the training of 250 small and medium
enterprises (SMEs) to develop HIV/AIDS, TB and malaria workplace
policies and programmes in partnership with Friends of the Global
Fund Africa, the hosting of a nationwide essay competition titled
‘My Tree and I’, and the launch of Green Clubs in 36 schools
across Nigeria under our “Going Green; Beyond Words” project
in collaboration with Idea Builders Initiative.
26 Access Bank Plc

“So far, over 25,000 lives have

been touched and impacted
through our employees”
Employee volunteering
As a best-in-class financial services provider, the Bank believes that
its employees have their own responsibility to contribute to societal
development and so it supports participation in impactful initiatives
My Tree and I
to address social concerns.
Empowered to contribute ideas, skills and resources to address social
issues, our 4500 employees are actively engaged in various high
impact and sustainable community development initiatives across
Africa in the focus areas of education, health and the environment.
So far, over 25,000 lives have been touched and impacted through
our employees. This includes around 15,000 students in educational
institutions, 100 orphans and vulnerable children affected by HIV/
AIDS, 1500 secondary school students educated about HIV/AIDS,
4000 hospital patients, 2000 community members gaining access
to portable water and around 3500 orphans, old people, prison
inmates and motherless children.
Through employees’ Adopt-A-School project, various institutions
such as Mafoluku Grammar School and Ladipo Grammar School
have been renovated and provided with facilities to ensure a
conducive learning environment; our mentorship and skills sharing
Mini Health Mission
initiative has enhanced the National Youth Service Corp Scheme
while also benefiting secondary school students and teachers. Our
employees have developed stage plays to educate stakeholders on
HIV/AIDS and have also provided communities such as Ibeju Lekki
with borehole facilities for portable water. Oni Memorial Hospital
and Apapa General Hospital are beneficiaries of our hospital
intervention projects.
The Cervical Cancer Awareness Programme has provided free
screening for women and we also sponsored cataract eye surgery
for the less privileged in Calabar and Yola.
In recognition of our CSR efforts, Access Bank was named ‘Most
Socially Responsible Bank 2010’ at the African Banker Awards.
Cervical Cancer Awareness Programme
Most Socially Responsible Bank 2010
Access Bank Plc 27

Risk Management
“Access Bank Plc has a well-established risk governance As such, risk management occupies a significant position of
structure and an experienced risk team. Our risk management relevance and importance in the Bank.
framework provides essential tools to enable us to take timely
The Board of Directors determines Access Bank’s overall objectives
and informed decisions to maximise opportunities and mitigate
in terms of risk by issuing risk policies. These policies define
potential threats. Access Bank has taken pre-emptive action
acceptable levels of risk for day-to-day operations as well as
to reshape the portfolio, tighten underwriting standards and
the willingness of Access Bank to assume risk, weighed against
increase the frequency of risk monitoring and stress testing in
the expected rewards. The umbrella risk policy is detailed in
case of adverse scenarios or downturns.”
the Enterprise Risk Management (ERM) Framework, which is a
structured approach to identifying opportunities, assessing the risk
Approach to Risk inherent in these opportunities and actively managing these risks
in a cost-effective manner. It is a top-level integrated approach
Risk is an inherent part of Access Bank Plc and its subsidiary
to events identification and analysis for proper assessment,
companies’ (“the Bank”) business activities. Access Bank’s overall risk
monitoring and identification of business opportunities. Specific
tolerance is established in the context of the Bank’s earnings power,
policies are also in place for managing risks in the different risk
capital, and diversified business model. Effective risk management is
areas of credit, market and operational risks.
critical to any Bank for achieving financial soundness.
The evolving nature of risk management practices and the
In view of this, aligning risk management to the Bank’s organisational
dynamic character of the banking industry necessitate regular
structure and business strategy has become an integral part of our
review of the effectiveness of each enterprise risk management
business. Access Bank’s risk management framework and governance
component. In light of this, the Bank’s ERM Framework is subject
structure are intended to provide comprehensive controls and ongoing
to continuous review to ensure effective and cutting-edge risk
management of the major risks inherent in its business activities. It
management. The review is done in either or both of the following
is also intended to create a culture of risk awareness and personal
ways: via continuous self-evaluation and monitoring by the Risk
responsibility throughout the Bank.
Management and Compliance Divisions in conjunction with
The Bank has taken pre-emptive action to reshape the portfolio, internal audits; and through independent evaluation by external
tighten underwriting standards and increase the frequency of risk auditors, examiners and consultants.
monitoring and stress testing. These actions will not immunise the
The Chief Risk Officer has primary responsibility for risk
Bank from the effects of a cyclical downturn in its core markets,
management and the review of the ERM Framework and to
but should mitigate their impact.
provide robust challenge to the management teams based on
Our risk profile at the end of 2010 is marked by a number of key quantitative and qualitative metrics. All amendments to the Bank’s
developments. The Bank has low exposure to higher-risk asset ERM Framework require Board approval. The risk management
classes, and has maintained vigilance and discipline in responding division is responsible for the enforcement of the Bank’s risk
to the challenging environment. It also has a diversified portfolio policy by constantly monitoring risk, with the aim of identifying
across countries, products and customer segments; disciplined and quantifying significant risk exposures and acting upon such
liquidity management; a well-established risk governance exposures as necessary.
structure; and an experienced senior team.
Overall, we view risk not only as a threat or uncertainty, but also as a
Access Bank has been disciplined in its management of risk. The potential opportunity to grow and develop the business, within the
Bank has increased its focus on the inter-relationships between risk context of risk appetite. Hence, our approach to risk management
types and, where appropriate, underwriting standards have been is not limited to considering downside impacts or risk avoidance; it
tightened. It has also conducted periodic reviews of risk exposure also encompasses taking risk knowingly for competitive advantage.
limits and risk control disciplines so as to position itself against Access Bank approaches risk, capital and value management
adverse developments. To mitigate against higher levels of market robustly and we believe that our initiatives to date have positioned
volatility and economic uncertainty, the Bank regularly subjects the Bank at the leading edge of risk management.
its exposures to a range of stress tests across a wide variety of
products, portfolios and customer segments.
Risk and Capital Drive Value
The Bank’s risk management architecture is carefully crafted to
The pursuit of value requires us to balance risk assumed with
balance corporate oversight with well-defined risk management
capital required. Hence, we have embarked on a journey, which
functions which fall into one of three lines of defence where risk
requires us to undertake analysis involving optimising the upside
must be managed: lines of business, governance & control and
and minimising the downside on an ongoing and rigorous basis.
corporate audit. The Board of Directors and Management of the
We believe that this process will add value for our shareholders,
Bank are committed to constantly establishing, implementing
and provide security to our other capital providers and clients,
and sustaining tested practices in risk management to match
as well as ensure overall sustainability in our business activities.
those of leading international banks. We are convinced that the
long-term sustainability of our Bank depends critically on the Every business activity in our Bank requires us to put capital at
proper governance and effective management of our business. risk, in exchange for the prospect of earning a return. In some
activities, the level of return is quite predictable, whereas in other
28 Access Bank Plc

activities the level of return can vary over a very wide range, ranging as several potential impact of a number of historical and
from a loss to a profit. Accordingly, over the past year we have hypothetical forward-looking systemic stress scenarios;
expended substantial energy on improving our risk and capital • Accountability through common framework to manage risks;
management framework, to focus on taking risks where we:
• Empowering risk managers to make decisions and escalate
• Understand the nature of the risks we are taking, and what issues; and
the range of outcomes could be under various scenarios, for • Expertise, authority and independence of risk managers.
taking these risks;
The Basel II Capital Accord is a set of new, more risk-sensitive
• Understand the capital required in order to assume these
rules for capital requirement calculations, which came into effect
risks;
on 1 January 2007. The Basel II rules define the minimum capital
• Understand the range of returns that we can earn on the a financial institution should hold for unexpected events. They
capital required to back these risks; and also provide sets of minimum qualitative standards and risk
• Attempt to optimise the risk-adjusted rate of return we can management practices that a financial institution should have in
earn, by reducing the range of outcomes and capital required place. The current Basel II rules include capital requirements for
arising from these risks, and increasing the certainty of operational risk, in addition to credit and market risk, which are
earning an acceptable return. already covered in the current Basel I.
Our objective of balancing risk, return and capital has led us to The Accord is made up of three pillars:
enhance substantially our risk management methodologies, in Pillar I covers the calculation of risk-weighted assets for credit risk,
order to be able to identify threats, uncertainties and opportunities market risk and operational risk;
and in turn develop mitigation and management strategies to
achieve an optimal outcome. Pillar II addresses the supervisory review process, the financial
institution’s capital adequacy assessment including other risks not
addressed under Pillar I and the strategy for maintaining capital
Fig. 1. Risk and Capital Drive Value levels. In other words, it allows firms and supervisors to take a
view on whether the firm should hold additional capital to cover
Value the three Pillar 1 risk types, or to cover other risks. A firm’s own
• Required capital
• Capital allocation • Risk profile is internal models and assessments support this process; and
is a function
is the key driver the key driver
of the risk Pillar III addresses market discipline and requirements regarding
of value of value creation
distribution
Risk Capital market disclosure of risk-related information. It covers external
communication of risk and capital information by banks.
Basel II also provides for different approaches to calculating capital
requirements.
Value is added for shareholders if our process allows us to At Access Bank, we are committed to the implementation of Basel
demonstrate sustainable risk-adjusted returns in excess of our II in the medium term. To this end, a standing steering committee
cost of capital. The process provides security to our capital leads the Bank’s Basel II effort, with the full support of the
providers and clients by assuring them that we are not taking on Management of the Bank and the Board of Directors.
incremental risks which adversely affect the outcomes we have Through an embedded risk governance structure, a continuous
contracted to deliver to them. focus on credit, the management of the Bank’s liquidity position
and the monitoring of the Bank’s risk-weighted assets demand
Basel II Implementation and capital supply, the Bank ensures compliance with minimum
regulatory and Board-approved capital targets.
Access Bank has applied the Basel II framework as part of
its capital management strategy since 2009. Substantial The Bank also monitors, on a continuous basis, risk trends in
enhancements were made to the risk management framework business areas where the environment is changing and/or its
based on the guidelines of the Basel II Capital Accord. growth rates are increasing to ensure that the Bank remains
within its set risk appetite. For each of the risk trends, the
• Design of risk capital model to evaluate risks; Executive Committee and Board are informed of changes in
• A defined risk appetite that is aligned with business strategy the environment relating to the specific risk trend, the Bank’s
optimisation; positioning, exposure and actions being taken or planned.
• Risk decisions based on accurate, transparent and rigorous
analytics; Enterprise-wide Stress Testing
• Stress tests to measure the potential impact to the Bank
As a part of our core risk management practices, the Bank
of very large changes in various types of key risk factors
conducts enterprise-wide stress tests on a periodic basis to better
(eg interest rates, liquidity, non-performing loans) as well
Access Bank Plc 29

Risk Management (Cont.)
understand earnings, capital and liquidity sensitivities to certain In 2010, stress testing activity was intensified, with specific focus
economic scenarios, including economic conditions that are more on certain asset classes, customer segments and the potential
severe than anticipated. These enterprise-wide stress tests provide impact of macroeconomic factors. Stress tests have taken into
an understanding of the potential impacts to our risk profile, capital consideration possible future scenarios that could arise as a result
and liquidity. It generates and considers pertinent and plausible of the development of prevailing market and environmental
scenarios that have the potential to adversely affect our business. conditions. Stress testing themes such as inflation, Naira exchange
rate fundamentals, declines in asset values, depletion of external
Stress testing and scenario analysis are used to assess the financial
reserves, potential border conflicts are built into the testing to
and management capability of Access Bank to continue operating
ensure consistency of impacts on different risk types.
effectively under extreme but plausible trading conditions. Such
conditions may arise from economic, legal, political, environmental Examples of risk type stress testing are covered in the section on
and social factors. Scenario(s) are carefully selected by a group Market risk.
drawn from senior line of business, risk and finance executives.
Impacts to each line of business from each scenario are then Risk Management Philosophy, Culture,
analysed and determined, primarily leveraging the models and Appetite and Objectives
processes utilised in everyday management routines.
Risk management philosophy and culture
Impacts are assessed along with potential mitigating actions that
may be taken in each scenario. Analysis from such stress scenarios Risk management is at the core of the operating structure of the
is compiled for and reviewed through our Group ALCO, and the group. We seek to limit adverse variations in earnings and capital
Enterprise Risk Management Committee and serves to inform and by managing risk exposures within agreed levels of risk appetite.
be incorporated, along with other core business processes, into Our risk management approach includes minimising undue
decision making by Management and the Board. The Bank would concentrations of exposure, limiting potential losses from stress
continue to invest in and improve stress testing capabilities as a events and the prudent management of liquidity.
core business process. See Fig. 2. Our risk management process was effective throughout 2010,
Our stress testing framework is designed to: despite a tough economic environment. However, the Bank’s
risk management is continuously evolving and improving, given
• Contribute to the setting and monitoring of risk appetite that there can be no assurance that all market developments,
• Identify key risks to our strategy, financial position, and in particular those of extreme nature, can be fully anticipated at
reputation all times. Hence, executive management has remained closely
• Examine the nature and dynamics of the risk profile and assess involved with important risk management initiatives, which have
the impact of stresses on our profitability and business plans focused particularly on preserving appropriate levels of liquidity
and capital, as well as managing the risk portfolios.
• Ensure effective governance, processes and systems are in
place to co-ordinate and integrate stress testing Risk management is integral to the Bank’s decision-making and
management process. The Bank’s ambition is to embed it in the
• Inform senior management
role and purpose of all employees via the organisational culture,
• Ensure adherence to regulatory requirements thus enhancing the quality of strategic, capital allocation and day-
to-day business decisions.
Fig. 2. Stress Testing Framework
Country Stress Testing
Business Analysis
Stress Testing Forum Scenario Management
Stress and Impact
Selection Action
Testing Assessment
Risk Type Stress Testing
30 Access Bank Plc

Access Bank considers risk management philosophy and culture – Adopt a holistic and integrated approach to risk
as the set of shared beliefs, values, attitudes and practices that management and bring all risks together under one or a
characterise how the Bank considers risk in everything it does, limited number of oversight functions;
from strategy development and implementation to its day-to-day – Empower risk officers to perform their duties
activities. In this regard, the Bank’s risk management philosophy professionally and independently without undue
is that a moderate and guarded risk attitude ensures sustainable interference;
growth in shareholder value and reputation.
– Ensure a clearly defined risk management governance
The Bank believes that enterprise risk management provides the structure;
superior capabilities to identify and assess the full spectrum of risks
– Ensure clear segregation of duties between market facing
and to enable staff at all levels to better understand and manage
business units and risk management/control functions;
risks. This will ensure that:
– Strive to maintain a conservative balance between risk
• Risk acceptance is done in a responsible manner; and profit considerations; and
• The executive and the Board of the Bank have adequate risk – Continue to demonstrate appropriate standards of
management support; behaviour in development of strategy and pursuit of
• Uncertain outcomes are better anticipated; objectives.
• Accountability is strengthened; and (b) Risk officers work as allies and thought partners to other
• Stewardship is enhanced. stakeholders within and outside the Bank and are guided in
the exercise of their powers by a deep sense of responsibility,
The Bank identifies the following attributes as guiding principles
professionalism and respect for other parties.
for its risk culture.
(c) Risk management is a shared responsibility. Therefore, the
(a) Management and staff: Bank aims to build a shared perspective on risks that is based
– Consider all forms of risk in decision-making; on consensus.
– Create and evaluate business-unit and Bank-wide risk (d) Risk management is governed by well-defined policies, which
profile to consider what is best for their individual business are clearly communicated across the Bank.
units/department and what is best for the Bank as a whole; (e) Equal attention is paid to both quantifiable and non-
– Adopt a portfolio view of risk in addition to quantifiable risks.
understanding individual risk elements; (f) The Bank avoids products and businesses it does not understand.
– Retain ownership and accountability for risk and risk See Fig. 3.
management at the business unit or other point of
Bank risk oversight approach
influence level;
– Accept that enterprise risk management is mandatory, not Our oversight starts with the strategy setting and business
optional; planning process. These plans help us articulate our appetite for
risk, which is then set as risk appetite limits for each business unit
– Strive to achieve best practices in enterprise risk
to work within.
management;
The Bank’s Risk Management and Compliance Division provides a
– Document and report all significant risks and enterprise-
central oversight of risk management across the Bank to ensure
risk management deficiencies;
that the full spectrum of risks facing the Bank are properly
Fig. 3. Risk Management Process
Group strategy and business planning

Risk appetite limits and policy setting
Risk
Risk and
Risk Management Risk adjusted Capital
control
identification actions Monitoring reporting performance allocation
assessments
management
Group oversights systems and tools
Access Bank Plc 31

identified, measured, monitored and controlled in order to The Bank’s risk profile is assessed through a ‘bottom-up’ analytical
minimise adverse outcomes. approach covering all major businesses, countries and products.
The risk appetite is approved by the Board and forms the basis for
The division is complemented by the financial control and
establishing the risk parameters within which the businesses must
regulatory/reputation risk group in the management of strategic
operate, including policies, concentration limits and business mix.
and reputational risks respectively.
In 2010, we sought to enhance the consolidation, focus and
The Chief Risk Officer coordinates the process of monitoring and
reporting of the key financial risk appetite metrics, and the cascade
reporting risks across the Bank. Internal audit has the responsibility
from group level down to business unit and monoline level.
of auditing the risk management and control function to ensure
that all units charged with risk management perform their roles Accordingly, we established an enhanced suite of base case
effectively on a continuous basis. Audit also tests the adequacy of [through-the-cycle (TTC)] risk appetite metrics and incorporated
internal control and makes appropriate recommendations where these within the 2011–2016 business plans. Stressed (extreme
there are weaknesses. event) risk appetite metrics, linked to our stress- and scenario-
testing programme, will be finalised in 2011. Access Bank has
cultivated and embedded a prudent and conservative risk appetite,
Strategy and business planning
focused on the basics and core activities of banking.
Risk management is embedded in our business strategy and
planning cycle. Testament to this is the inclusion of risk management
Risk management objectives
as one of our strategic priorities. By setting the business and risk
strategy, we are able to determine appropriate capital allocation and The broad risk management objectives of the Bank are:
target setting for the Bank and each of our businesses. • To identify and manage existing and new risks in a planned
All business units are required to consider the risk implications of and coordinated manner with minimum disruption and cost;
their annual plans. These plans include analysis of the impact of • To protect against unforeseen losses and ensure stability of
objectives on risk exposure. Throughout the year, we monitored earnings;
business performance regularly focusing both on financial
• To maximise earnings potential and opportunities;
performance and risk exposure. The aim is to continue the
process of integrating risk management into the planning and • To maximise share price and stakeholder protection;
management process and to facilitate informed decisions. • To enhance credit ratings and depositor, analyst, investor and
Through ongoing review, the links between risk appetite, risk regulator perception; and
management and strategic planning are embedded in the business • To develop a risk culture that encourages all staff to identify
so that key decisions are made in the context of the risk appetite risks and associated opportunities and to respond to them
for each business unit. with cost effective actions.
Scope of risks
Risk appetite
The scope of risks that are directly managed by the Bank are as
Risk appetite is an articulation and allocation of the risk capacity
follows:
or quantum of risk Access Bank is willing to accept in pursuit of
its strategy, duly set and monitored by the Executive Committee • Credit risk
and the Board, and integrated into our strategy, business, risk and • Operational risk
capital plans. Risk appetite reflects the Bank’s capacity to sustain
potential losses arising from a range of potential outcomes under
• Market and liquidity risk
different stress scenarios. • Legal and compliance risk
The Bank defines its risk appetite in terms of both volatility of • Strategic risk
earnings and the maintenance of minimum regulatory capital • Reputational risk
requirements under stress scenarios. Our risk appetite can be • Capital risk.
expressed in terms of how much variability of return the Bank is
prepared to accept in order to achieve a desired level of result. It is These risks and the framework for their management are detailed
determined by considering the relationship between risk and return. in the enterprise risk management framework.
We measure and express risk appetite qualitatively and in terms of
quantitative risk metrics. The quantitative metrics include earnings Responsibilities and functions
at risk (or earnings volatility) and, related to this, the chance of The responsibilities of the Risk Management and Compliance
regulatory insolvency, chance of experiencing a loss and economic division, the Financial Control and Strategy Group, Regulatory/
capital adequacy. These comprise our group-level risk appetite Reputation Risk Group with respect to risk management, are
metrics. In addition, a large variety of risk limits, triggers, ratios, highlighted opposite. The responsibilities of the Regulatory/
mandates, targets and guidelines are in place for all the financial Reputational Risk Group are not included:
risks (eg credit, market and asset and liability management risks).
32 Access Bank Plc

Risk Management and Compliance Division Financial Control and Strategy

(a) Champion the implementation of the ERM Framework across (a) Prepare and monitor the implementation of the Bank’s
the Bank and subsidiaries. Periodically receive risk reports strategic plan.
from Management highlighting key risk areas, control failures (b) Conduct strategic and operational review of the Bank’s
and remedial action steps taken by Management. activities.
(b) Develop risk policies, principles, process and reporting (c) Conduct regular scanning of the Bank’s operating
standards that define the Bank’s risk strategy and appetite in environment.
line with the Bank’s overall business objectives. (d) Coordinate and monitor the Bank’s rating exercises by
(c) Ensure that controls, skills and systems are in place to enable external rating agencies.
compliance with the Bank’s policies and standards. (e) Prepare business intelligence reports for the Bank’s
(d) Facilitate the identification, measurement, assessment, Management.
monitoring and control of the level of risks in the Bank. (f) Prepare periodic management reports on subsidiaries and
associates.
(e) Collect, process, verify, monitor and distribute risk information
across the Bank and other material risk issues to senior (g) Perform competitive analysis in comparison with industry
management, the Board and regulators. peers.
(h) Conduct strategic/operational review of branches.
(f) Monitor compliance with bank-wide risk policies and limits.
(g) Provide senior management with practical, cost effective Risk Management Governance Framework
recommendations for improvement of risk management.
The framework details Access Bank’s risk universe and governance
(h) Act as a key contact for senior management who may wish to
structure comprising three distinct layers:
request ad hoc reviews/investigations.
1. The enterprise-wide risk management and corporate
(i) Ensure that laws, regulations and supervisory requirements
governance Committee forums;
are complied with, including consequence management.
2. The Executive Management Committees; and
(j) Champion the implementation of Basel II.
3. Risk management responsibilities per risk area.
(k) Promote risk awareness and provide education on risk.
(l) Provide assurance on compliance with internal and external
policies with respect to risk management.
Access Bank Plc 33

Fig.4. Risk Management Governance Structure

Access Bank’s Risk Management Governance Structure is depicted
below.
Board of
Directors
Layer 1 Board
Board Risk Board Risk Board Risk
Committee on
Management Credit & Finance Audit
Human
Committee Committee Committee
Resources
Operational Risk Asset and Enterprise Risk Management

Management Liability Management Credit
Layer 2 Committee
Committee Committee Committee
(ORMC) (ALCO) (ERMC) (MCC)
Chief Risk
Layer 3 Officer
Risk
Management Internal Audit
Layer 4 and Compliance Division
Division
Business Unit
Risk Champions
Role of the Board of Directors (d) Approve and periodically review the Bank’s risk strategy and
policies;
The Board of Directors’ role, as it relates to risk management,
is divided into six areas; general, credit, market, compliance, (e) Approve the Bank’s risk appetite and monitor the Bank’s risk
operational, and reputational risks. profile against this appetite;
Specific roles in these areas are further defined below: (f) Ensure that the Management of the Bank has an effective
ongoing process to identify risk, measure its potential impact
and proactively manage these risks;
General Risk
(g) Ensure that the Bank maintains a sound system of risk
(a) Develop a formal enterprise-risk management framework; management and internal control with respect to:
(b) Review and approve the establishment of a risk management – Efficiency and effectiveness of operations
function that would independently identify, measure, monitor – Safeguarding of the Bank’s assets (including information)
and control risks inherent in all risk-taking units of the Bank;
– Compliance with applicable laws, regulations and
(c) Ratify the appointment of qualified officers to manage the supervisory requirements
risk management function;
– Reliability of reporting
– Behaving responsibly towards all stakeholders;
34 Access Bank Plc

(h) Ensure that a systematic, documented assessment of the Compliance risk

processes and outcomes surrounding key risks is undertaken
(a) Approve the Bank’s code of conduct and ethics;
at least annually;
(b) Monitor the Bank’s compliance with laws and regulations,
(i) Ensure that Management maintains an appropriate system of
its code of conduct and ethics and corporate governance
internal control and review its effectiveness;
practices;
(j) Ensure risk strategy reflects the Bank’s tolerance for risk;
(c) Ensure new and changed legal and regulatory requirements are
(k) Review and approve changes/amendments to the risk identified, monitored and reflected in the Bank’s processes;
management framework;
(d) Approve the compliance structure, mechanisms and processes
(l) Review and approve risk management procedures and control established by management to ensure compliance with
for new products and activities; and current laws, regulations and supervisory requirements; and
(m) Periodically receive risk reports from Management (e) Ensure the Bank has a compliance culture that contributes to
highlighting key risk areas, control failures and remedial the overall objective of risk management.
action steps taken by Management.
Operational risk
Credit risk
(a) Oversee the overall governance of the Bank’s operational risk
(a) Approve the Bank’s overall risk tolerance in relation to credit management process;
risk based on the recommendation of the Chief Risk and
(b) Set the Bank’s operational risk strategy and direction in line
Compliance Officer;
with the Bank’s corporate strategy;
(b) Ensure that the Bank’s overall credit risk exposure is
(c) Approve the Bank’s operational risk management framework;
maintained at prudent levels and consistent with the available
capital through quarterly review of various types of credit (d) Periodically review the framework to ensure its relevance and
exposure; effectiveness;
(c) Ensure that top management as well as individuals responsible (e) Ensure that senior management is performing their risk
for credit risk management possess the requisite expertise and management responsibilities; and
knowledge to accomplish the risk management function; (f) Ensure that the Bank’s operational risk management
(d) Ensure that the Bank implements a sound methodology that framework is subject to effective and comprehensive internal
facilitates the identification, measurement, monitoring and audit by operationally independent, appropriately trained and
control of credit risk; competent staff.
(e) Ensure that detailed policies and procedures for credit risk
exposure creation, management and recovery are in place; Reputational risk
and (a) Set an appropriate tone and guidelines regarding the
(f) Appoint credit officers and delegate approval authorities to development and implementation of effective reputation risk
individuals and committees. management practices, including an explicit statement of a
zero tolerance policy for all unethical behaviour;
Market risk (b) Approve the Bank’s framework for the identification,
measurement, control and management of reputational risk;
(a) Define the Bank’s overall risk appetite in relation to market
risk; (c) Monitor the Bank’s compliance with its reputational risk
management policies and recommend sanctions for material
(b) Ensure that the Bank’s overall market risk exposure is
breaches of internal policies;
maintained at levels consistent with the available capital;
(d) Review all exception reports by external parties such as
(c) Ensure that top management as well as individuals
regulators and auditors; ensure that appropriate sanctions
responsible for market risk management possess sound
are applied to erring officers; demand from Management
expertise and knowledge to accomplish the risk management
appropriate explanations for all exceptional items; ensure
function;
that Management puts in place effective and remedial
(d) Approve the Bank’s strategic direction and tolerance level for actions and reports on progress to the Board on an ongoing
liquidity risk; basis;
(e) Ensure that the Bank’s senior management has the ability and (e) Ensure that Board members do not compromise their fit and
required authority to manage liquidity risk; proper status with regulators. They shall ensure that only
(f) Approve the Bank’s liquidity risk management framework; Board members who do not tarnish the Bank’s image and
and reputation remain as members; and
(g) Ensure that liquidity risk is identified, measured, monitored (f) Ensure that only fit and proper persons are appointed to
and controlled. senior management positions in the Bank.
Access Bank Plc 35

The Board and Management Committees Committee (Group ALCO), and Operational Risk Management
Committee (ORMC).
The Board carries out its oversight function through its standing
committees each of which has a charter that clearly defines its In line with best practice, the Chairman of the Board does not sit
purpose, composition, and structure, frequency of meetings, on any of the Committees. The Board’s four standing committees
duties, tenure and reporting lines to the Board. are: the Board Risk Management Committee, the Board Audit
Committee, the Board Human Resources Committee and the
The Management Committees are: The Executive Committee
Board Credit & Finance Committee.
(EXCO), Enterprise Risk Management Committee (ERMC),
Management Credit Committee (MCC), Group Asset & Liability
The roles and remits of the Committees are as follows:
Committee Key Objective Membership
Board Risk The primary role of the Committee is to report 4 Non-Executive Directors appointed by the
Management to the Board and provide appropriate advice and Board of Directors
Committee recommendations on matters relevant to risk Group Managing Director
management.
Group Deputy Managing Director
Executive Directors as appointed
Chaired by an independent Director
Board Audit The Committee assists the Board in ensuring the 3 Non-Executive Directors appointed by the
Committee independence of the internal audit function of the Bank. Board of Directors
Executive Directors as appointed
Board Credit The Committee considers and approves loan applications 7 Non-Executive Directors appointed by the
& Finance above certain limits (as defined by the Board from time Board of Directors
Committee to time) which have been approved by the Management Group Managing Director
Credit Committee. It also acts as a catalyst for credit policy
changes.
3 Executive Directors as appointed
One of the non-Executive Directors shall be
Chairman of the Committee
Chaired by an independent Director
Board Human The Committee advises the Board on its oversight 4 Non-Executive Directors appointed by the
Resources responsibilities in relation to compensation, benefits and Board of Directors
Committee all other human resource matters affecting the directors Group Managing Director
and employees of the Bank.
The Executive The Committee is primarily responsible for the Group Managing Director as – Chairman
Committee implementation of strategies approved by the Board and Group Deputy Managing Director
(EXCO) ensuring the efficient deployment of the Bank’s resources.
All the Executive Directors
Enterprise Risk The Bank’s Enterprise Risk Management Committee is Group Managing Director (Chairman)
Management responsible for managing all risks with the exception Group Deputy Managing Director
Committee of credit, market and liquidity risks. The risks within the
All Executive Directors
(ERMC) Committee’s purview include (but are not limited to)
strategic, reputational, compliance and operational risks. Chief Risk Officer
Chief Compliance Officer
Chief Financial Officer
All ERM Division Heads
Head, Corporate Affairs
Head, Legal Department
Head, Information Technology
36 Access Bank Plc

Committee Key Objective Membership
Management This Committee is responsible for managing credit risks in Group Managing Director/Chief Executive Officer –
Credit the Bank. Chairman
Committee Group Deputy Managing Director – Vice Chairman
(MCC)
All Executive Directors
Group Head, Credit Risk Management
Team Leaders, Credit Risk Management
Group Heads, Commercial Bank
Group Heads, Institutional Bank
Group Heads, Operations & IT
Group Head, Compliance
Group Head, Internal Audit
Head of Legal (or his/her nominee as approved by
the GMD/CEO)
Other Group Heads
Group Asset The Group ALCO is responsible for the optimum Group Managing Director/Chief Executive Officer –
& Liability management of the Bank’s balance sheet and taking Chairman
Committee relevant decisions, as well as recommending to the Board Group Deputy Managing Director
(Group ALCO) of Directors prudent asset/liability management policies
Group Executive Directors
and procedures that enable the Bank to achieve its goals
while operating in full compliance with all relevant laws Chief Risk Officer
and regulations. Country Managing Directors
Country Treasury Heads
Group Treasurer
Head, Financial Control – Domestic
Head, Financial Control – International
Head, Group Asset & Liability Management
Head, Group Market Risk
Head, Credit Risk
Operational The Committee is responsible for the effectiveness of the Group Managing Director/Chief Executive
Risk operational risk management function within the Bank. All (GMD) – Chairman
Management decisions and deliberations of the Committee are reported Group Deputy Managing Director
Committee to the Board Risk Management Committee.
All Division Heads/ Executive Directors
(ORMC)
Chief Risk Officer
Head, Operational Risk Management Group
Chief Information Officer
Head, Group Compliance and Internal Control
Head, Group Internal Audit
Head, Group HR
Other Group Heads or persons to be designated by
the Committee from time to time
Access Bank Plc 37

Without prejudice to the roles of these committees, the full Board Board Audit Committee
shall retain ultimate responsibility for risk management.
The Committee performs the following functions:
(a) Oversee the development of a procedure for the receipt,
Specific roles of the Board and Management Committees
retention and treatment of complaints received by the Bank,
The Board’s risk management oversight roles and responsibilities regarding accounting, internal accounting controls, unethical
are delegated to the following committees: activity/breach of the corporate governance code or audit
matters, including a means for the Bank’s stakeholders
(employees, customers, suppliers, applicants and others) to
Board Risk Management Committee
submit such complaints in a confidential and anonymous
Specifically, the Committee performs the following functions: manner;
(a) Oversee the establishment of a formal written policy on the (b) Investigate any matter brought to its attention, within the
Bank’s overall risk management framework. The policy defines scope of its duties, with the authority to retain counsel or
risks and risk limits that are acceptable and unacceptable to other advisors, if in its judgment that is appropriate, at the
the Bank. It provides guidelines and standards to administer expense of the Bank;
the acceptance and ongoing management of all risks; (c) Submit meeting minutes and, as appropriate, discuss the
(b) Ensure that adequate policies are in place to manage and matters deliberated upon at each Committee meeting with
mitigate the adverse effects of both business and control risks the Board of Directors;
in its operations; (d) Annually review and reassess its responsibilities, functions,
(c) Ensure compliance with established policy through periodic pre-approval policy for audit and non-audit services, and
review of reports provided by management, internal and charter, making changes as necessary, and conduct an annual
statutory auditors and the supervisory authorities; performance evaluation of its activities;
(d) Approve the appointment of qualified officers to manage the (e) Ensure that the Bank provides adequate funding, as
risk function; determined by the Committee, to the Committee for
payment and compensation for advisers engaged by the
(e) Oversee the management of all risks except credit risk in the
Committee, and payment of ordinary administrative expenses
Bank;
incurred by the Committee in carrying out its duties;
(f) Re-evaluate the risk management policy of the Bank on a
(f) Review the proposed audit plan(s) and review the results
periodic basis to accommodate major changes in internal or
of internal audits completed since the previous committee
external factors;
meeting, as well as the focus of upcoming internal audit
(g) Evaluate internal processes for identifying, assessing, projects;
monitoring and managing key risk areas, particularly:
(g) Approve the appointment and termination of the Chief
– Important judgments and accounting estimates Internal Auditor, based on the recommendations of the Bank’s
– Business and operational risks in the areas of credit, executive management;
market and operations (h) Evaluate the process the Bank has in place for monitoring and
– Specific risks relating to outsourcing assessing the effectiveness of the internal audit function;
– Consideration of environmental, community and social risks; (i) Monitor the progress of the internal audit programme and
considers the implications of internal audit findings on the
(h) Evaluate the adequacy of the Bank’s risk management
control environment;
systems and control environment with management and
auditors (internal and external); (j) Monitor the implementation of agreed action plans by
management;
(i) Evaluate the Bank’s risk profile, the action plans in place to
manage risks, and monitor progress against plan to achieve (k) Review reports from the internal auditors detailing their key
these actions; findings and agreed management actions;
(j) Review the processes the Bank has in place for assessing and (l) Review the appropriateness of the qualification of the internal
continuously improving internal controls, particularly those audit personnel and work resources; and
related to areas of significant risk; and (m) Review the internal audit reporting lines and independence.
(k) Approve the provision of risk management services by
external providers.
38 Access Bank Plc

Board Credit Committee Enterprise Risk Management Committee (ERMC)

The Board Credit Committee under delegated authority is The Committee has the following responsibilities for all risks within
responsible for the following: its purview:
(a) Facilitate the effective management of credit risk by the Bank; (a) Formulating policies;
(b) Approve credit risk management policies, underwriting (b) Monitoring implementation of risk policies;
guidelines and standard proposals on the recommendation of (c) Reviewing risk reports for presentation to the Board/Board
the Management Credit Committee; Committees; and
(c) Approve definition of risk and return preferences and target (d) Implementing Board decisions across the Bank.
risk portfolio;
(d) Approve the Bank’s credit rating methodology and ensure its
Management Credit Committee (MCC)
proper implementation;
(e) Approve credit risk appetite and portfolio strategy; The Committee has the following responsibilities:
(f) Approve lending decisions and limit setting; • Review credit policy recommendations for Board approval;
(g) Approve new credit products and processes; • Approve individual credit exposure in line with its approval
limits;
(h) Approve assignment of credit approval authority on the
recommendation of the Management Credit Committee; • Agree on portfolio plan/strategy for the Bank;
(i) Approve changes to credit policy guidelines on the • Review monthly credit risk reports and remedial action plan;
recommendation of the management credit committee; and
(j) Approve credit facility requests and proposals within limits • Coordinate the Bank’s response to material events that may
defined by Access Bank Plc’s credit policy and within the have an impact on the credit portfolio.
statutory requirements set by the regulatory/supervisory The Committee is assisted by the credit risk management function,
authorities; whose responsibilities are to:
(k) Recommend credit facility requests above stipulated limit to • Establish and maintain effective credit risk management
the Board; environment in the Bank;
(l) Review credit risk reports on a periodic basis; • Review proposals in respect of credit policies and standards
(m) Approve credit exceptions in line with Board approval; and and endorse to the Board of Directors for approval;
(n) Make recommendations to the Board on credit policy and • Define the Bank’s risk and return preferences and target risk
strategy where appropriate. portfolio;
• Monitor on an ongoing basis the Bank’s risk quality and
Board Committee on Human Resources performance, review periodic credit portfolio reports and
assess portfolio performance;
The Board Committee on Human Resources has responsibility for
the following:
• Define credit approval framework and assign credit approval
limits in line with bank policy;
(a) Ensure the right calibre of executive management is attracted,
• Review defined credit product programmes on
retained, motivated and rewarded;
recommendation of the head of the credit risk management
(b) Make recommendations on the remuneration of the and endorse to the Board of Directors for approval;
Chairman, non-executive directors and executive directors to
• Review credit policy changes initiated by management and
the Board for ratification;
endorse to the Board of Directors for approval;
(c) Approve remuneration levels for senior management and
• Ensure compliance with the Bank’s credit policies and
other Bank personnel;
statutory requirements prescribed by the regulatory/
(d) Review and approve remuneration policies and strategy; and supervisory authorities;
(e) Monitor the Bank’s people-risk universe. • Approve credit facility requests within limits defined by Access
Bank’s credit policy guideline (CPG), and within the statutory
Specific roles of Management Committees requirements set by the regulatory/supervisory authorities;
• Review and endorse credits approved by SBU heads;
The following Management Committees are directly responsible
for risk management oversight: • Review and recommend to the Board Credit Committee,
credits beyond their approval limits;
• Review periodic credit portfolio reports and assess portfolio
performance; and
Access Bank Plc 39

• Approve exceptions/write-offs, waivers and discounts on non- • ALCO will delegate limits/authorities to line management
performing credit facilities within specified limit. to enable the smooth functioning of the Bank’s day-to-day
operations; and
Asset & Liability Committee (ALCO) • In the event of a vote, majority will prevail with the ALCO
chairman casting the deciding vote in the event of a tie.
The purpose of the Group ALCO is to:
• Monitor and control all market, liquidity risk and interest rate Other responsibilities include:
risk across the Bank and its subsidiaries in accordance with
the risk appetite set by the Board of Directors; • Prudent management of market risk:
• Review limit, guideline or trigger breaches and agree remedial – To ensure the levels of market risk assumed by the Bank
actions in order to align exposures with agreed appetite; are effectively and prudently managed in accordance with
the Market Risk Policy
• Approve Market Risk, Liquidity Risk and Banking Book Interest
Rate Risk Policies for each of the banking subsidiaries; – To approve market risk limits and triggers in accordance
with the risk appetite set by ALCO and the Bank’s
• Review and note the impact of internal and external factors
Concentration Risk Policy
on the net interest margin; and
– To note compliance with all market risk limits and triggers,
• Recommend to the Board, policies and guidelines under
and ensure actions to address breaches are promptly
which the Bank will manage the matters listed below, and in
executed and reported to authorised bodies
so doing protect the Bank’s capital base and reputation;
– To manage all forms of market risk by firstly using the
• Balance sheet growth;
Alco’s mandate to set exposure levels and stop-loss
• Deposits, advances and investments; limits, and secondly, if necessary, by hedging any form
• Non earning assets; of market risk
• Foreign exchange activities and positions; – To review and approve all policies and procedures relating
• Market and liquidity management; and to market risk management
• Capital management.
• Prudent management of liquidity risk:
– To ensure the levels of tactical and strategic liquidity
risk assumed by the Bank are effectively and prudently
Responsibilities and Authorities
managed in accordance with the Liquidity Risk Policy;
• The ultimate responsibility for the proper management of the – To approve liquidity risk limits and guidelines in
Bank’s assets and liabilities lies with the Board of Directors; accordance with the risk appetite set by ALCO;
• The Board of Directors will delegate that responsibility to – To note compliance with all liquidity risk guidelines
ALCO and ALCO, through this mandate, shall be responsible and limits, and ensure actions to address breaches are
for the establishment of appropriate policies and limits across promptly executed and reported to authorising bodies;
the Group;
– To ensure appropriate steps are taken where there is
• ALCO will be responsible for the implementation and deterioration in liquidity;
monitoring of these Policies and for the development of
appropriate procedures and guidelines for adoption at – To approve funding and liquidity management strategies
Country ALCOs and specific ratification by the subsidiaries’ based on forecast balance sheet growth;
Board of Directors; – To ensure the provision of standby funding facilities is
• Country ALCO will be responsible for providing the kept within prudent levels;
information input to ALCO to enable it to perform its – To review and approve all policies, procedures and
function; contingency plans relating to liquidity risk management;
• Country ALCO will be responsible for proposing amendments and
to Policies for approval and ratification by ALCO, such – To approve liquidity stress scenarios and associated
amendments having been first approved at the Country contingency plans.
ALCO; • Prudent management of interest rate risk:
• ALCO will report to the Board of Directors through the – To ensure that the level of interest rate risk assumed by
Board Risk Management Committee detailing strategies, risk the Bank is effectively and prudently managed;
positions since the last report received. Any excesses during
– To note compliance with all guidelines and limits, and
the period under review must be supported by details quoting
ensure actions to address breaches are promptly executed
the relevant authority for the excess ie Central Bank, ALCO
and reported to authorising bodies;
etc;
40 Access Bank Plc

– To approve limits and guidelines in accordance with the • Ensure adequate resources are allotted at various levels to
risk appetite set by ALCO and Market Risk; and manage operational risk across the enterprise;
– To approve the subsidiaries’ market risk and hedging • Ensure adequate communication to the functional
strategies on a case-by-case basis, or explicitly delegate departments and emphasise on the importance of operational
the approval of such strategies to the Country ALCO. risk management and assure adequate participation;
• Prudent margin management: • Coordinate an ongoing appropriate awareness and education
– To review and note the impact of internal and external programme on operational risk in the Bank from top to
factors on the Bank’s current and forecasted net interest bottom through the implementation of an enterprise wide
margin; operational risk approach; and
– To review and approve funds transfer pricing principles,

• Set guidelines for identifying operational risk in all new
methodologies and rates; and products and processes.
– To review and approve policies and procedures relating to

margin management. Roles of risk champions in the Business Units
• General: • Coordinate all risk management activities in the Business Unit,
– To monitor adherence to regulatory requirements; and including compliance with risk policies and procedures;
– To delegate to the Group Asset and Liability Management
• Provide on-the-job training on risk management to other
team the responsibility of dealing with trigger, guideline staff;
or limit breaches across the Group on a day-to-day basis. • Liaise with Risk Management and Compliance Division to
obtain new systems, approaches and methods for managing
Role of Senior Management risks and advise staff within the unit appropriately;
• Coordinate the gathering of risk-related information,
The role of senior management as it relates to risk management is:
while ensuring the completeness and accuracy of the
(a) Implement risk strategy approved by the Board of Directors; risk information gathered, analyse the information
(b) Develop policies and procedures for identifying, measuring and periodically report to the group head and the risk
and controlling risks identified in the Bank’s risk universe; management department in the agreed format;
(c) Provide appropriate resources to evaluate and control all
• In conjunction with other managers in the Business
identified risks; Unit, articulate risk management/optimisation strategies
for managing risks, prepare a risk mitigation plan and
(d) Review risk reports on a regular and timely basis;
communicate these to the Risk Management and Compliance
(e) Review periodic risk reports for operational and other risks Division; and
separate from credit and market risks; and • Monitor and report on the effectiveness of risk mitigation
(f) Provide all reports required by the Board and its committees plans in reducing risk incidence in the Unit.
for the effective performance of risk management oversight
functions.
Risk Management and Compliance Division – relationship
Operational Risk Management Committee (ORMC) with other units
The Committee has the following responsibilities: The relationships between Risk Management and Compliance
Division (RMCD) and other units are highlighted below:
• Review and recommend the Operational Risk Management
(ORM) framework and any amendments or enhancements to
• RMCD sets policies and defines limits for other units in the
the Board of Directors (BOD) for approval; Bank;
• Oversee the implementation of the Operational Risk
• RMCD performs bank-wide risk monitoring and reporting;
Management framework across the enterprise; • Other units provide relevant data to RMCD for risk monitoring
• Review methodologies and tools for identification, and reporting and identify potential risks in their line of business
assessment, monitoring and control of operational risks and and RMCD provides a framework for managing such risks;
maintaining the loss event databases; • RMCD and market facing units collaborate in designing new
• Ensure operational risk exposures are within the risk tolerance products;
limits set under the policy; • RMCD and internal audit coordinate activities to provide a
• Review the reports from the Operational Risk Management holistic view of risks across the Bank;
(ORM) unit, business lines and their respective risk profiles • RMCD makes recommendations with respect to capital
to concur on areas of highest priority and put in place the allocation, pricing and reward/sanctions based on risk reports;
related mitigation strategies; and
Access Bank Plc 41

Fig. 5. Risk Management and Compliance Division – Relationship with Other Units
Risk
Committees
Business information Risk reports
and analytics and practices
Business Enquiries Regulators
Units Reporting and analysis
Risk reports
Positions and other and practices
information Auditors
Operations Risk Management Enquiries
Reporting and analysis and
Compliance Division
Risk summary Rating
Risk report
Internal Agencies
Audit Audit report Risk advisory Clients
Technology
Support
• Information technology support group provides relevant user Provisions for credit losses meet prudential guidelines set forth
support to the RMCD function in respect of the various risk by the Central Bank of the countries where we operate, both
management software. for loans for which specific provisions exist as well as for the
portfolio of performing loans. Access Bank’s credit process
Credit Risk Management requires rigorous proactive and periodic review of the quality of
the loan portfolio. This helps us to identify and remediate credit
Credit risk arises from the failure of an obligor of the Bank issues proactively.
to repay principal or interest at the stipulated time or failure
The Criticised Assets Committee performs a quarterly review of
otherwise to perform as agreed. This risk is compounded if the
loans with emerging signs of weakness; the Management Credit
assigned collateral only partly covers the claims made to the
Committee and the Board Credit Committee also perform reviews
borrower, or if its valuation is exposed to frequent changes due to
of the quality of our loan portfolio on a quarterly basis. These
changing market conditions (ie market risk).
are in addition to daily reviews performed by our Credit Risk
The Bank’s Risk Management philosophy is that moderate and Management department.
guarded risk attitude will ensure sustainable growth in shareholder
value and reputation. Extension of credit in Access Bank is guided
by its Credit Risk and Portfolio Management Plan, which sets out Principal Credit Policies
specific rules for risk origination and management of the loan
The following are the principal credit policies of the Bank:
portfolio. The Plan also sets out the roles and responsibilities of
different individuals and committees involved in the credit process. • Extension of Credit: Every extension of credit must be
approved by at least three officers; one of whom must
We recognise the fact that our main asset is our loan portfolio.
be from Independent Credit Risk Management. The final
Therefore, we actively safeguard and strive to continually improve
approving officer must have a credit limit for the total facilities
the health of our loan portfolio. We scrutinise all applications and
extending to the obligor (or group of related obligors).
weed out potential problem loans during the loan application
phase, as well as constantly monitor existing loan portfolio.
• Special Approvals: Extension of credit to certain sectors may
require unique approvals or prohibited altogether.
The goal of the Bank is to apply sophisticated but realistic credit • Credit Analysis Policy: There are consistent standards of
models and systems to monitor and manage credit risk. Ultimately,
credit analysis across the Access Bank for approval of credit
these credit models and systems are the foundation for the
facilities.
application of internal rating-based approach to calculation of capital
requirements. The development, implementation and application of • Annual Review of Facilities: All extension of credits must
these models are guided by the Bank’s Basel II strategy. be reviewed at least once every 12 months.
The pricing of each credit granted reflects the level of risks inherent
• Industry Limits: The Access Bank Group utilises industry
in the credit. Subject to competitive forces, Access Bank implements limits to maintain a diversified portfolio of risk assets.
a consistent pricing model for loans to its different target markets. • Problem Recognition: There are uniform and consistent
The client’s interest is guarded at all times, and collateral quality is standards for recognition of credit migration and remediation
never the sole reason for a positive credit decision. across the Access Bank.
42 Access Bank Plc

Responsibilities of Business Units and Independent system based on international best practices (including Basel II
Credit Risk Management recommendations) in the determination of the Obligor and Facility
risks and thus allows the bank to maintain its asset quality at a
In Access Bank, Business Units and Independent Credit Risk
desired level.
Management have a joint responsibility for the overall accuracy of
risk ratings assigned to obligors and facilities. Business Relationship In Access Bank, the objective of the Risk Rating Policy is to ensure
Managers will be responsible for deriving the ORR and FRR reliable and consistent Obligor Risk Ratings (‘ORRs’) and Facility Risk
using approved methodologies as set out in this policy, however, Ratings (‘FRRs’) throughout the Bank and to provide guidelines for
Independent Credit Risk Management may also perform this function. risk rating for retail and non-retail exposures in the bank.
Notwithstanding who derives the risk rating, Independent Credit The Risk Rating Policy incorporates credit risk rating models which
Risk Management is responsible for reviewing and ensuring the estimate risk of obligor default and facility risks (covering both
correctness of the ORR and FRR assigned to a borrower and recovery as well as exposure risk). These models are currently based
facilities. This review includes ensuring the ongoing consistency on expert judgment for retail and non-retail exposures. Our long-
of the business’ Risk Rating Process with Access Bank Risk Rating term goal is to adopt the Internal Rating Based (“IRB”) approach.
Policy; ongoing appropriate application of the Risk Rating Process The data required to facilitate the IRB approach is being gathered.
and tools; review of judgmental and qualitative inputs into the
All Access Bank businesses that extend credit are subject to the
Risk Rating Process; ensuring the timeliness and thoroughness of
Risk Rating Policy.
risk rating reviews; and ensuring that the documentation of the
Risk Rating Process is complete and current.
Credit risk rating models in Access Bank Plc
Independent Credit Risk Management has the final authority if
there is a question about a specific rating. The following are the credit risk rating models deployed by Access
Bank.
Credit process
For Retail Exposures:
The Bank’s credit process starts with portfolio planning and target
Obligor Risk Rating (ORR) Models have been developed for:
market identification. Within identified target markets, credits
are initiated by relationship managers. The proposed credits are 1. Personal Loans
subjected to review and approvals by applicable credit approval
2. Credit Cards
authorities. Further to appropriate approvals, loans are disbursed
to beneficiaries. On-going management of loans is undertaken 3. Auto Loans
by both relationship management teams and our Credit Risk
4. Mortgage Loans
Management Group. The process is applied at the Head Office
and in the subsidiaries. Facility Risk Rating (FRR) Models have been developed for:
If a preliminary analysis of a loan request by the account manager 1. Loss Given Default (LGD)
indicates that it merits further scrutiny, it is then analysed in 2. Exposure at Default (EAD)
greater detail by the account manager, with further detailed
review by Credit Risk Management. The concurrence of Credit Risk
Management must be obtained for any credit extension. If the For Non-Retail Exposures:
loan application passes the detailed analysis, it is then submitted Obligor Risk Rating (ORR) Models have been developed for:
to the appropriate approval authority for the sise of facilities.
1. Sovereign (Approach to rating Sovereign Exposures using
The standard credit evaluation process is based both on quantitative external ratings)
figures from the Financial Statements and on an array of qualitative
factors. Factual information on the borrower is collected as well as 2. Bank and NBFIs
pertinent macroeconomic data, such as an outlook for the relevant 3. Corporate
sector, etc. These subjective factors are assessed by the analyst and all
individuals involved in the credit approval process, relying not only on – Manufacturing Sector
quantitative factors but also on extensive knowledge of the company – Trading Sector
in question and its management. – Services Sector
– Real Estate Sector
Credit Risk Measurement 4. Small and Medium Enterprises (SME) without Financials
Facility Risk Rating (FRR) Models have been developed for
Risk rating methodology
1. Loss Given Default (LGD)
The credit rating of the counterparty plays a fundamental role in
final credit decisions as well as in the terms offered for successful 2. Exposure at Default (EAD)
loan applications. Access Bank employs a robust credit rating
Access Bank Plc 43

Risk Rating Process Credit Risk Control & Mitigation Policy

In Access Bank, all businesses must have a documented and Authority Limits on Credit
approved Risk Rating Process for deriving risk ratings for all
The highest credit approval authority is the Board of Directors,
obligors and facilities (including those covered under Credit
supported by the Board Credit Committee and further by the
Programmes). The Risk Rating Process is the end-to-end process
Management Credit Committee. Individuals are also assigned
for deriving ORRs and FRRs and includes models, guidelines,
credit approval authorities in line with the Bank’s criteria for such
support adjustments, collateral adjustments, process controls, as
delegation set out in its Credit Risk and Portfolio Managament
well as any other defined processes that a business undertakes
Plan. The principle of central management of risk and decision
in order to arrive at ORRs and FRRs. Risk Rating Process of each
authority is maintained by the Bank. The maximum amount of
business must be in compliance with the Bank’s Risk Rating Policy
credit that may be approved at each subsidiary is limited, with
and deviations must be explicitly approved.
amounts above such limit being approved at the Head Office.
Establishing the Risk Rating Process is the joint responsibility of
This structure gives Access Bank the possibility to incorporate
the Business Manager and Independent Credit Risk Manager
much needed local expertise, but at the same time manage risk on
associated with each business. The process must be documented
a global level. Local Credit Committees of the Bank’s subsidiaries
and must be approved by the Management Credit Committee.
are thus able to grant credits, but the sum total of the exposure
The Risk Rating Process for each business must be reviewed and of the applicant and financially related counterparties is limited,
approved every three years, unless more frequent reviews are most commonly by the subsidiary’s capital. All applications that
specified as a condition of the approvals. Interim material changes would lead to exposures exceeding the set limit are referred to the
to the Risk th, as determined by the Independent Credit Risk appropriate approval authority in the Head Office.
Manager for the business, must be re-approved.
The credit approval limits of the principal officers of the Group are
shown in the table below
Risk Rating Scale and external rating equivalent
Access Bank operates a 12-grade numeric risk rating scale. The Authority Approval Limit
risk rating scale runs from 1 to 8. Rating 1 represents the best
Board of Directors Limited to 20% of
obligors and facilities and rating 8 represents the worst obligors
Shareholders’ funds
and facilities. The risk rating scale incorporates sub-grades and full
unimpaired by losses
grades, reflective of realistic credit migration patterns.
The risk rating scale and the external rating equivalent is detailed Board Credit Committee N6,000,000,000
below:
Management Credit Committee N500,000,000
Access Bank S&P Long term Grade Group Managing Director N200,000,000
Risk Rating equivalent
Group Deputy Managing Director N150,000,000
1 AAA Investment Grade
Group Executive Director N75,000,000
2+ AA
Managing Directors of bank N25,000,000
2 A subsidiaries
2- BBB
Collateral Policies
3+ BB+ Standard Grade
It is the Bank’s policy that all credit exposures are adequately
3 BB collateralised. Credit risk mitigation is an activity of reducing credit
risk in an exposure or transferring it to counterparty, at facility
3- BB- level, by a safety net of tangible and realisable securities including
approved third-party guarantees/insurance.
4 B Non Investment
Grade In Access Bank, strategies for risk reduction at the transaction level
5 B- differ from that at the portfolio level. At transaction level, the most
common technique used by the bank is the collateralisation of the
6 CCC exposures, by first priority claims or obtaining a third party guarantee.
Other techniques include buying a credit derivative to offset credit
7 C risk at transaction level. At portfolio level, asset securitisation, credit
derivatives etc are used to mitigate risks in the portfolio.
8 D
44 Access Bank Plc

However, primary consideration when approving credits is always • Shipping Documents (for imports);
the obligor’s financial strength and debt-servicing capacity. The • Bankers Acceptance;
guidelines relating to risk mitigant as incorporated in the guidance
• Life Assurance Policies.
note of BCBS on “Principles for the Management of Credit Risk”
(September 2000, Paragraph 34) are to be taken into consideration
while using a credit risk mitigant to control credit risk. Master Netting Arrangements
“Banks can utilise transaction structure, collateral and guarantees It is the Bank’s policy that all credit exposures are adequately
to help mitigate risks (both identified and inherent) in individual collateralised. Notwithstanding, our account opening
credits but transactions should be entered into primarily on the documentation allows the Bank to net off customers’ deposits
strength of the borrower’s repayment capacity. Collateral cannot be against their exposure to the Bank. Generally, transactions are
a substitute for a comprehensive assessment of the borrower or the allowed to run on a gross basis, however, in cases of unfavourable
counterparty, nor can it compensate for the insufficient information. credit migration, the Bank may elect to invoke the netting
It should be recognised that any credit enforcement actions (eg agreement.
foreclosure proceedings) can eliminate the profit margin on the
transaction. In addition, banks need to be mindful that the value of
Credit Related Commitments
collateral may well be impaired by the same factors that have led to
the diminished recoverability of the credit.” It is the Bank’s policy that all credit exposures are adequately
collateralised. Credit risk mitigation is an activity of reducing credit
The range of collaterals acceptable to the Bank includes:
risk in an exposure.
• Cash/Deposit (domestic and foreign currency) with Bank
including certificates of deposit or comparable instruments
Provisioning policy
issued by the Bank;
• Certificates of Deposit from other banks; Provisions for credit losses meet prudential guidelines set forth
by the Central Bank of the countries where the Group operates
• Commodities;
both for loans for which specific provisions exist as well as for the
• Debt securities issued by sovereigns and public-sector portfolio of performing loans.
enterprises;
• Debt securities issued by banks and corporations;
• Equities – Stocks/Share Certificates of quoted blue chip
companies;
• Mortgage on Landed Property;
• Asset-backed securities;
• Charge on assets (Fixed and/or Floating) – premises/inventory/
receivables/merchandise/plant/machinery etc;
• Negative Pledges;
• Lien on Asset being financed;
• Stock Hypothecation;
Access Bank Plc 45

(g) (i) Risk Assets Analysis by Performance:

Group Group Bank Bank
Dec-10 Dec-09 Dec-10 Dec-09
N’000 N’000 N’000 N’000
Performing 380,175,823 249,674,343 357,114,093 240,495,101
Watchlist 47,441,364 83,107,177 47,441,364 83,107,177
Non-performing 427,617,187 332,781,520 404,555,457 323,602,278
Substandard 11,608,245 55,905,297 8,217,681 41,817,821
Doubtful 8,113,821 14,458,001 6,002,447 13,785,969
Lost 17,951,073 10,308,140 17,008,026 6,160,373
37,673,139 80,671,438 31,228,154 61,764,163
465,290,326 413,452,958 435,783,611 385,366,441
(h) (i) Summary of performing but past due loans:

Group
As at 31 December 2010
Financial
Retail Corporate SME Institution Total
N’000 N’000 N’000 N’000 N’000
Not yet due 4,334,410 308,210,551 – 12,868,766 325,413,727
Past due up to 30 days 3,136,538 48,336,826 – 7,027,821 58,501,185
Past due 31–60 days 1,108,125 30,317,378 – 773,072 32,198,575
Past due 61–90 days 458,185 18,707,531 – 1,186,626 20,352,342
9,037,258 405,572,286 – 21,856,285 436,465,829
Group
Financial
Retail Corporate SME Institution Total
N’000 N’000 N’000 N’000 N’000
Not yet due 40,566,846 194,239,258 391,833 13,554,464 248,752,401
Past due up to 30 days 11,699,647 55,001,568 10,139 4,544,964 71,256,318
Past due 31–60 days 1,495,919 8,513,869 37,301 31,570 10,078,659
Past due 61–90 days 508,008 2,099,017 84,922 2,194 2,694,141
54,270,420 259,853,712 524,195 18,133,192 332,781,519
Bank
Financial
Retail Corporate Institution Total
N’000 N’000 N’000 N’000
Not yet due 4,334,410 308,210,551 12,868,766 325,413,727
Past due up to 30 days 2,678,964 45,012,977 3,652,551 51,344,492
Past due 31–60 days 1,042,895 30,019,478 282,441 31,344,814
Past due 61–90 days 425,106 18,071,536 543,133 19,039,775
8,481,375 401,314,542 17,346,891 427,142,808
Bank
Financial
Retail Corporate Institution Total
N’000 N’000 N’000 N’000
Not yet due 37,573,956 189,691,110 13,229,846 240,494,912
Past due up to 30 days 11,656,121 54,972,007 4,538,049 71,166,177
Past due 31–60 days 918,234 8,480,169 31,570 9,429,973
Past due 61–90 days 410,005 2,099,017 2,194 2,511,216
50,558,316 255,242,303 17,801,659 323,602,278
46 Access Bank Plc

(ii) Summary of non-performing loans per sector

Sector
N’000 N’000 N’000 N’000
Agriculture 307,561 176,486 6,505 176,486
Capital Market 9,974,431 – 8,493,597 –
Construction 5,371,206 151,614 3,824,542 151,614
Education 48,453 42,496 44,000 42,496
Finance and Insurance 1,154,789 10,137,813 503,764 10,137,813
General 1,456,826 93,775 767,771 93,775
General Commerce 6,860,752 5,303,932 6,032,352 5,303,932
Information and Communication 2,593,452 17,662,170 2,450,523 17,662,170
Manufacturing 3,102,428 22,530,145 2,937,596 22,530,145
Oil and Gas 5,376,278 5,494,472 4,989,703 5,494,472
Real Estate Activities 859,100 100 857,892 100
Transportation and Storage 522,376 171,160 299,117 171,160
Others 45,485 18,907,275 20,791 –
37,673,139 80,671,438 31,228,154 61,764,163
Summary of Non Performing Loans by Geography

Geography
N’000 N’000 N’000 N’000
Abuja & North West 101,145 – 101,145 –
North Central 712,780 1,089,998 712,780 1,089,998
North East 18,244 – 18,244 –
South East 3,780,923 860,902 3,780,923 860,902
South South 419,160 431,458 419,160 431,458
South West 27,671,651 59,381,806 26,195,902 59,381,805
Rest of Africa 4,969,236 18,907,274 – –
Europe – – – –
37,673,139 80,671,438 31,228,154 61,764,163
(i) (i) Summary of Risk Exposure by Geographical Sectors

Group
Loans and on- Advances under Debt
Due from Banks lending facilities finance lease Instruments Total
N’000 N’000 N’000 N’000 N’000
Geography
Abuja & North West – 1,444,122 – 3,000,000 4,444,122
North Central 205,706 20,743,775 547,483 – 21,496,964
North East – 3,318,774 – – 3,318,774
South East 122,233 35,267,472 535,060 – 35,924,765
South South 148,980 9,646,412 18,179 – 9,813,571
South West 346,043 388,461,791 1,808,192 – 390,616,026
Rest of Africa 9,201,758 22,046,730 175,479 – 31,423,967
Europe 89,482,429 6,597,888 – 2,030,870 98,111,187
Others 3,663,962 449,140 – – 4,113,102
103,171,111 487,976,104 3,084,393 5,030,870 599,262,478
Access Bank Plc 47

Group
N’000 N’000 N’000 N’000 N’000
Geography
Abuja & North West – 1,267,755 930 62,771,536 64,040,221
North Central – 13,841,868 951,599 – 14,793,467
North East – 679,112 1,495 – 680,607
South East – 25,005,007 96,865 – 25,101,872
South South – 5,989,451 49,437 – 6,038,888
South West 10,324,115 369,801,727 2,673,694 – 382,799,536
Rest of Africa 2,746,537 – 475,953 382,026 3,604,516
Europe 62,121,758 – – – 62,121,758
Others 17,984,697 – – – 17,984,697
93,177,107 416,584,920 4,249,973 63,153,562 577,165,562
Bank
N’000 N’000 N’000 N’000 N’000
Geography
Abuja & North West – 1,444,122 – 3,000,000 4,444,122
North Central 205,706 19,970,498 547,483 – 20,723,687
North East – 3,318,774 – – 3,318,774
South East 122,233 35,267,472 535,061 – 35,924,766
South South 148,980 9,646,413 18,179 – 9,813,572
South West 100,356 388,822,110 1,640,369 – 390,562,835
Rest of Africa 1,966,466 – – – 1,966,466
Europe 69,633,739 – – – 69,633,739
Others – – – – –
72,177,480 458,469,389 2,741,092 3,000,000 536,387,961
Bank
N’000 N’000 N’000 N’000 N’000
Geography
Abuja & North West – 1,267,755 930 62,771,536 64,040,221
North Central – 13,841,868 951,599 – 14,793,466
North East – 679,112 1,495 – 680,607
South East – 25,005,007 96,865 – 25,101,872
South South – 5,989,451 49,437 – 6,038,888
South West 10,241,863 341,715,211 2,673,694 – 354,630,769
Rest of Africa – – – – –
Europe 65,949,842 – – – 65,949,842
Others – – – – –
76,191,705 388,498,404 3,774,020 62,771,536 531,235,665
48 Access Bank Plc

(ii) Summary of Risk Exposure by Industry Sectors

Group
N’000 N’000 N’000 N’000 N’000
Sector
Agriculture – 3,962,299 – – 3,962,299
Arts, entertainment and recreation – 270,000 – – 270,000
Capital Market – 19,287,516 98 – 19,287,614
Construction – 23,484,293 11,123 – 23,495,416
Education – 239,858 11,507 – 251,365
Finance and insurance 103,182,124 19,856,459 42,136 4,030,870 127,111,589
General – 18,433,552 172,089 – 18,605,641
General commerce – 79,897,870 806,697 – 80,704,567
Government – 13,395,708 509,166 – 13,904,874
Information and communication – 69,450,897 501,509 – 69,952,406
Manufacturing – 87,303,950 589,372 1,000,000 88,893,322
Oil and Gas – 107,303,938 7,317 – 107,311,255
Power and Energy – 538,571 – – 538,571
Professional, technical and scientific activities – 443,184 – – 443,184
Real estate activities – 33,026,429 2,527 – 33,028,956
Transportation and storage – 8,579,855 315,408 – 8,895,263
Others – 2,501,725 115,444 – 2,617,169
103,182,124 487,976,104 3,084,393 5,030,870 599,273,491
Group
N’000 N’000 N’000 N’000 N’000
Sector
Agriculture – 1,152,138 3,609 – 1,155,747
Capital Market – 13,646,922 – – 13,646,922
Communication – 79,993,353 744,235 – 80,737,588
Consumer Credit – 11,943,353 326,502 – 12,269,855
Finance and Insurance 93,177,107 21,759,152 88,609 – 115,024,868
General Commerce – 72,670,348 918,859 – 73,589,207
Government – 11,078,609 7,628 63,153,562 74,239,799
Manufacturing – 46,821,316 1,535,804 – 48,357,120
Oil and Gas – 78,786,642 7,993 – 78,794,635
Others – 37,653,680 501,253 – 38,154,933
Real Estate and Construction – 37,944,479 28,460 – 37,972,939
Transportation – 3,134,928 87,021 – 3,221,949
93,177,107 416,584,920 4,249,973 63,153,562 577,165,562
Bank
N’000 N’000 N’000 N’000 N’000
Sector
Agriculture – 3,547,702 – – 3,547,702
Arts, entertainment and recreation – 270,000 – – 270,000
Capital Market – 19,287,516 98 – 19,287,614
Construction – 19,019,811 11,123 – 19,030,934
Education – 239,561 11,507 – 251,068
Finance and insurance 72,177,480 11,201,204 42,136 2,000,000 85,420,820
General – 12,995,228 172,089 – 13,167,317
Access Bank Plc 49

General commerce – 77,229,508 523,879 – 77,753,387

Government – 17,791,498 509,166 18,300,664
Information and communication – 68,304,866 501,509 – 68,806,375
Manufacturing – 84,553,478 589,372 1,000,000 86,142,850
Oil and Gas – 106,085,244 7,317 – 106,092,561
Power and Energy – 391,361 – – 391,361
Professional, technical and scientific activities – 443,184 – – 443,184
Real estate activities – 30,320,052 2,527 – 30,322,579
Transportation and storage – 6,603,440 254,925 – 6,858,365
Others – 185,736 115,444 – –
72,177,480 458,469,389 2,741,092 3,000,000 536,086,781
Bank
N’000 N’000 N’000 N’000 N’000
Sector
Agriculture – 1,152,138 3,609 – 1,155,747
Capital Market – 13,646,922 – – 13,646,922
Communication – 79,993,353 744,235 – 80,737,588
Consumer Credit – 11,943,353 326,502 – 12,269,855
Finance and Insurance 76,191,705 21,759,152 88,609 – 98,039,466
General Commerce – 72,670,348 918,859 – 73,589,207
Government – 11,078,609 7,628 62,771,536 73,857,773
Manufacturing – 46,821,316 1,535,804 – 48,357,120
Oil and Gas – 78,786,640 7,993 – 78,794,633
Others – 9,567,166 25,299 – 9,592,465
Real Estate and Construction – 37,944,479 28,460 – 37,972,939
Transportation – 3,134,928 87,022 – 3,221,950
76,191,705 388,498,404 3,774,020 62,771,536 531,235,665
(j) (i) Summary of portfolio and Risk Rating of customers and counterparties with Risk Exposure
Access Bank Rating
N’000 N’000 N’000 N’000
Best Quality Obligor 25,180,973 32,695,251 22,293,493 32,695,251
Good Quality Obligor 53,456,529 13,948,005 53,456,529 13,948,005
Acceptable Quality Obligor 321,018,078 200,757,829 306,790,941 200,757,829
Watchlist 47,441,364 83,107,177 47,441,364 83,107,177
Substandard 11,608,245 55,905,298 8,217,681 41,817,821
Doubtful 8,113,821 14,458,001 6,002,447 13,785,969
Lost 17,951,073 10,308,140 17,008,026 6,160,372
Unrated 6,290,414 9,655,192 – –
491,060,497 420,834,893 461,210,481 392,272,424
External Risk Rating

Description
N’000 N’000 N’000 N’000
Investment Grade 78,637,502 46,643,255 75,750,022 46,643,255
Standard Grade 321,018,078 200,757,829 306,790,941 200,757,829
Non Investment Grade 85,114,503 144,871,340 78,669,518 144,871,340
Unrated 6,290,414 28,562,469 – –
491,060,497 420,834,893 461,210,481 392,272,424
50 Access Bank Plc

Market Risk Management Risk of losses arising from future potential adverse movements
in market rates, prices and volatilities are measured using a VaR
Definition
methodology. VaR, in general, is a quantitative measure of market
Access Bank’s ability to meet business objectives will be adversely risk that applies recent historic market conditions to estimate the
affected by changes in the level or volatility of market rates or potential future loss in market value that will not be exceeded in a
prices such as interest rates, foreign exchange rates, equity prices, set time period at a set statistical confidence level.
commodity prices and credit spreads. Market risk mainly arises
VaR provides a consistent measure that can be applied across
from trading activities and equity investments. Access Bank is also
trading businesses and products over time and can be set against
exposed to market risk through non-traded interest rate risk in its
actual daily trading profit and loss outcome. To assess their
banking book.
predictive power, VaR models are back tested against actual results.
Sensitivity measures are used in addition to VaR as risk
Market Risk Policy, Management and Control
management tools. For example, interest rate sensitivity is
The Bank’s ability to effectively identify, assess, monitor and measured in terms of exposure to a one basis point increase
manage market risks involved in its activities is critical to its in yields, whereas foreign exchange, commodity and equity
soundness and profitability. Its strategy is to invest its own sensitivities are measured in terms of the underlying values or
capital on a limited and carefully selected basis in transactions, amounts involved.
underwritings and other activities that involve market risk. The
Bank is exposed to market risk through adverse movements in
Traded market risk measurement and control
equity prices, foreign exchange and interest rates.
The models employed in evaluating risks include position-based
Market risk is managed in line with principal risks and control
models, volatility based models (based on the volatility of market
policy requirements approved by the Board Risk Committee. The
variables and their related covariance) and scenario-based models
Board approves the risk appetite for trading and non-trading
(the frequency of a severe loss estimated by repeating random
activities and risk limits are set within the context of the approved
scenarios with certain statistical properties that have, in most
market risk appetite. Market Risk monitors exposures against these
cases, been estimated from historical data).
limits.
The measurement techniques used to measure and control traded
The Bank’s GMD/CEO is responsible for approving specific position
market risk include daily value at risk, tail risk and stress testing.
limits, which are used for positions, which are sometimes specific
medium-term investment cases and other times strategic (or have
the potential of becoming strategic) in the medium term. Daily value at risk (DVaR)
Each trading unit within the Bank adheres to the general rules set DVaR is an estimate of the potential loss that might arise from
out by the Board of Directors. Moreover, each trading unit has its unfavourable market movements if current positions were to be
own set of working procedures and rules that further specify their held unchanged for one business day, measured to a confidence
targets, limits and scope in trading. level of 99%. This is to guard against incidence of significant
market movements, consequently improving management,
The position limits, or any changes to them, are proposed by the
transparency and control of the market risk profile. Daily losses
Bank’s head of trading and then accepted by the Bank’s Chief Risk
exceeding the DVaR figure are likely to occur, on average, five
Officer and reviewed by the Bank’s CEO, who has a say in limit
times in every 100 business days.
decisions. The size of each position limit is based on, among other
factors, underlying liquidity, the Bank’s risk appetite, as well as legal Access Bank uses an internal DVaR model based on the historical
limitations on individual positions imposed by authorities in Nigeria. simulation method. Two years of unweighted historical price
and rate data is applied and updated daily. This internal model
All market risks are reported to the Risk Committee daily (through
is also used for measuring value at risk over both a one-day
a dashboard) and quarterly with recommendations made
and 10-day holding period at a 99% confidence level for
concerning the risk profile including risk appetite, limits and
regulatory backtesting and regulatory capital calculation purposes
utilisation. The head of each business, assisted by the business risk
respectively. This model covers general market (position) risk across
management team, is accountable for all market risks associated
all approved interest rate, foreign exchange, commodity, equity
with its activities, which are reported to business risk governance
and traded credit products.
and control committees. Oversight and support is provided to the
business by the central market risk team. There are a number of considerations that should be taken into
account when reviewing DVaR numbers. These are as follows:
Access Bank has a dedicated market risk team with the sole
responsibility of implementing the market risk control framework. • Historical simulation assumes that the past is a good
Daily market risk and stress testing reports are produced for representation of the future. This may not always be the case;
trading portfolios covering all risk categories including interest • The assumed time horizon will not fully capture the market
rate, equity and foreign exchange credit spread risk. risk of positions that cannot be closed out or hedged within
this time horizon;
Access Bank Plc 51

• DVaR does not indicate the potential loss beyond the selected categories, which include interest rate, equity, foreign exchange,
percentile; commodity and credit spread risk. Secondly, the trading book
• Intra-day risk is not captured; is subjected to multi-factor scenarios that simulate past periods
of significant market disturbance and hypothetical extreme yet
• Prudent valuation practices are used in the DVaR calculation plausible events.
when there is difficulty obtaining rate/price information.
Stress scenarios are regularly updated to reflect changes in
To complement DVaR, tail risk metrics, stress testing and other
risk profile and economic events. Regular stress test scenarios
sensitivity measures are used.
are applied to interest rates, credit spreads, exchange rates,
commodity prices and equity prices. Ad hoc scenarios are also
Backtesting prepared reflecting specific market conditions and for particular
concentrations of risk that arise within the businesses.
DVaR is an important market risk measurement and control tool and
consequently the performance of the model is regularly assessed for
continued suitability. The main approach employed is a technique Risk limits
known as backtesting, which counts the number of days when daily
Risk limits are set and reviewed at least annually to control Access
trading losses exceed the corresponding DVaR estimate.
Bank’s trading activities in line with the defined risk appetite of
The regulatory standard for backtesting is to measure daily losses the Bank. Criteria for setting risk limits include relevant market
against DVaR assuming a one-day holding period and a 99% analysis, market liquidity and business strategy. Trading risk
level of confidence. The regulatory green zone of four or less limits are set at an aggregate, risk category and lower levels and
exceptions over a 12-month period is consistent with a good are expressed in terms of DVaR. This is further supported by a
working DVaR model. Backtesting reports are produced regularly. comprehensive set of non-DVaR limits, including foreign exchange
position limits, interest rate delta limits and option based limits.
Appropriate performance triggers are also used as part of the risk
Tail risk metrics
management process.
Tail risk metrics highlight the risk beyond the percentile selected
for DVaR. The two tail risk metrics chosen for daily focus, using
Interest rate risk
the current portfolio and two years of price and rate history, are:
• The average of the worst three hypothetical losses from the Interest rate risk is the exposure of the Bank’s financial condition
historical simulation; and to adverse movements in interest rates, yield curves and credit
spreads. The Bank is exposed to interest rate risk through the
• Expected shortfall (also referred to as expected tail loss), interest bearing assets and liabilities in its trading and banking
which is the average of all hypothetical losses from the books.
historical simulation beyond the 95th DVaR percentile.
Access Bank’s objective for management of interest rate risk in
the banking book is to ensure a higher degree of interest rate
Stress testing
mismatch margin stability and lower interest rate risk over an
Losses beyond the confidence interval are not captured by a VaR interest rate cycle. This is achieved by hedging material exposures
calculation, which therefore gives no indication of the size of with the external market.
unexpected losses in these situations. Market Risk complements The Bank’s operations are subject to the risk of interest rate
the VaR measurement by regular stress testing of market risk fluctuations to the extent that interest-earning assets and
exposures to highlight the potential risk that may arise from interest-bearing liabilities mature or re-price at different times
extreme market events that are rare but plausible. or in differing amounts. In the case of floating rated assets and
Stress testing is an integral part of the market risk management liabilities, the Bank is also exposed to basis risk, which is the
framework and considers both historical market events and difference in re-pricing characteristics of the various floating rate
forward-looking scenarios. indices, such as the savings rate and 90-day NBOR and different
types of interest. Non-traded interest rate risk arises in the banking
Stress testing provides an indication of the potential size of losses
book from the provision of retail and wholesale (non-traded)
that could arise in extreme conditions. It helps to identify risk
banking products and services, as well as from certain structural
concentrations across business lines and assist senior management
exposures within the Bank balance sheet, mainly due to re-pricing
in capital planning decisions.
timing differences between assets, liabilities and equity. These risks
A consistent stress testing methodology is applied to trading impact both the earnings and the economic value of the Bank.
and non-trading books. The stress testing methodology assumes Overall non-trading interest rate risk positions are managed by
that scope for management action would be limited during Treasury, which uses investment securities, advances to banks and
a stress event, reflecting the decrease in market liquidity that deposits from banks to manage the overall position arising from
often occurs. The Bank performs two main types of stress/ the Bank’s non-trading activities.
scenario testing. Firstly, risk factor stress testing, where extended
historical stress moves are applied to each of the main risk
52 Access Bank Plc

The principal tool used to measure and control market risk Foreign exchange risk
exposure within the Bank’s trading portfolios is the open
Foreign Exchange risk is the exposure of the Bank’s financial
position limits using the Earnings at Risk approach. Specified
condition to adverse movements in exchange rates. The Bank
limits have been set for open positions limits, which are the is exposed to foreign exchange risk primarily through its assets,
expected maximum exposure the Group is to be exposed to. managing customers’ deposits and through acting as an
Risk management activities are aimed at optimising net interest intermediary in foreign exchange transactions between central
income, given market interest rate levels consistent with the Bank’s and commercial banks.
business strategies.
The Bank’s foreign exchange risk is considered at a Bank level since
Interest-rate risk is monitored centrally with a Gap report. A an effective overview of such risk is a critical element of the Bank’s
limits framework is in place to ensure that retained risk remains asset/liability risk management. The Board of Directors defines its
within approved appetite. Interest rate risk also arises in each risk tolerance levels and expectations for foreign exchange risk
of the Africa subsidiary treasuries in the course of balance management and ensures that the risk is maintained at prudent levels.
sheet management and facilitating customer activity. The risk is
Foreign exchange risk is quantified using the net balance of assets
managed by local treasury functions, subject to modest risk limits and liabilities in each currency, and their total sum. The assets and
and other controls. liabilities include current positions, forward positions, commitments,
and the market value of derivatives in foreign currency.
Our net total currency balance is always within specified regulatory
limits which is currently 1% of shareholders’ funds.
(k) (i) Group’s Exposure to Foreign Exchange Risk

Analysis detailing concentration of currency risk for On- and Off-balance sheet financial instruments as at 31 December 2010 is
as follows:
Group
Naira Dollar GBP Euro Others Total
N’000 N’000 N’000 N’000 N’000 N’000
Assets
Cash and balances with
Central Bank of Nigeria 16,318,885 7,351,621 367,582 346,590 1,010,616 25,395,293
Treasury bills 11,618,000 – 3,536,564 – 20,703,247 35,857,812
Due from other banks 44,480,008 1,075,444 52,628,509 4,920,605 77,558 103,182,124
Loans and advances to customers 353,850,536 73,406,337 807,104 145,357 1,572,986 429,782,319
On-lending facilities 21,221,329 1,464,449 – – – 22,685,778
Advances under finance lease 2,465,110 649,282 – – – 3,084,393
Investment securities 116,911,504 – 2,030,870 – 723,586 119,665,960
Investment properties 12,943,078 – – – _ 12,943,078
Investment in associates – – – – – –
Other assets 11,992,788 8,146,513 1,714,326 1,352,499 81,008 23,287,133
Deferred tax asset – – 209,740 347,309 557,050
Property and equipment 19,161,511 – 242,534 – 5,986,031 25,390,076
Equipment on lease 1,561,045 – – – – 1,561,045
Goodwill 1,431,711 1,431,711
Total Assets (A) 613,925,505 92,093,645 61,537,230 6,765,051 30,502,342 804,823,772
Customer deposits 372,868,009 104,184,280 6,624,146 2,243,798 1,005,612 486,925,846

Due to other banks 14,558,599 43,584,541 2,584,271 1,784,634 1,527,308 64,039,353
On lending facilities 21,221,329 1,464,449 – – 22,685,778
Debt securities in issue – – –
Current income tax 3,038,888 – 985,472 – 453,597 3,492,485
Other liabilities 47,712,967 – – 3,106,116 85,353 51,889,908
Deferred tax liability 361,851 – – 58,094 419,945
Total Liabilities (B) 459,761,643 149,233,270 10,193,890 7,134,548 3,129,964 629,453,315
Net on-balance sheet financial
position (A)-(B) 154,163,862 (57,139,625) 51,343,340 (369,498) 27,372,378 175,370,457
Off-Balance Sheet 73,567,277 155,339,210 1,250,367 7,976,358 748,209 238,881,422
Access Bank Plc 53


N’000 N’000 N’000 N’000 N’000 N’000
Total Financial Assets (A) 538,994,333 104,726,791 11,254,624 4,710,481 34,097,709 693,783,938
Total Financial Liabilities (B) 396,824,554 110,276,299 8,993,118 8,993,055 27,350,864 525,437,890
position (A)-(B) 169,169,779 (5,549,508) 2,261,506 (4,282,547) 6,746,845 168,346,048
Off-Balance Sheet 44,081,663 81,508,308 592,448 9,166,292 2,706,800 138,055,511
Bank

N’000 N’000 N’000 N’000 N’000 N’000
Assets
Central Bank of Nigeria 16,683,207 493,785 339,024 132,376 – 17,648,392
Treasury bills 11,618,000 – – – – 11,618,000
Due from other banks 12,603,948 54,393,780 2,622,196 2,500,135 57,421 72,177,480
Loans and advances to customers 339,580,034 61,895,086 4,738 126,113 1,572,986 403,178,957
On-lending facilities 21,221,329 1,464,449 – – – 22,685,778
Advances under finance lease 2,259,782 481,310 – – – 2,741,092
Investment securities 116,811,620 – – – – 116,811,620
Investment in subsidiaries 24,261,123 – – – – 24,261,123
Investment properties 12,943 – – – – 12,943,078
Other assets 13,374,350 7,155,033 327,817 1,234,301 81,003 22,172,504
Deferred tax asset – – – – – –
Property and equipment 19,161,511 – – – – 19,161,511
Equipment on lease 1,561,045 – – – – 1,561,045
Goodwill – – – – – –
Total Assets (A) 592,079,027 125,883,443 3,293,775 3,992,925 1,711,410 726,960,580
Customer deposits 351,761,124 84,125,954 3,277,452 1,377,403 182 440,542,115

Due to other banks 12,986,517 20,106,856 2,622,196 2,500,135 57,421 72,177,480
On-lending facilities 21,221,329 1,464,449 16,861 105,395 1,527,310 34,742,938
Debt securities in issue 2,259,782 481,310 – – – 2,741,092
Current income tax 2,959,976 – – – – 116,811,620
Other liabilities 40,023,762 – 752,743 2,307,904 85,353 43,169,762
Deferred tax liability 355,197 – – – – 355,192
Total Liabilities (B) 429,307,905 105,697,259 4,047,055 3,790,701 1,612,845 544,455,766

position (A)-(B) 162,771,122 20,186,184 (753,280) 202,223 98,565 182,504,814
Off-Balance Sheet 63,386,134 123,320,551 679,198 6,413,354 652,693 194,457,931

N’000 N’000 N’000 N’000 N’000 N’000
Total Financial Assets (A) 522,711,134 115,040,073 9,179,606 610,223 33,683 647,574,719
Total Financial Liabilities (B) 351,776,950 112,382,908 4,827,007 5,436,671 160 474,423,696
position (A)-(B) 170,934,184 2,657,165 4,352,599 (4,826,448) 33,523 173,151,023
Off-Balance Sheet 44,081,663 72,529,536 505,316 8,221,803 298,593 125,636,911
54 Access Bank Plc

Liquidity Risk Limit Management and Monitoring

Liquidity risk arises when the Bank is unable to meet expected Active management of liquidity through the framework of
or unexpected current or future cash flows and collateral needs limits and control presented above is possible only with proper
without affecting its daily operations or its financial condition. monitoring capabilities. The monitoring process focuses on
The Bank is managed to preserve a high degree of liquidity so funding portfolios, the forward balance sheet and general
that it can meet the requirements of its customers at all times, indicators; where relevant information and data are compared
including periods of financial stress. against limits that have been established. The Bank’s Treasury
is responsible for maintaining sufficient liquidity by maintaining
The Bank has developed a liquidity management framework based
sufficient high ratio of liquid assets and available funding for
on a statistical model underpinned by conservative assumptions
near-term liabilities. The secured liquidity measure is calculated
with regard to cash inflows and the liquidity of liabilities. In
and monitored by risk management. Increased withdrawals of
addition, liquidity stress tests assuming extreme withdrawal
short-term funds are monitored through measurements of the
scenarios are performed. These stress tests specify additional
deposit base in the Bank. Liquidity risk is reported to the Board of
liquidity requirements to be met by holdings of liquid assets.
Directors on a quarterly basis.
The Bank’s liquidity has consistently been materially above
the minimum liquidity ratio and the requirements of its stress
Contingency Funding Plan
tests. Global funding and liquidity risk management activities
are centralised within Corporate Treasury. We believe that a Access Bank has a contingency funding plan which incorporates
centralised approach to funding and liquidity risk management early warning indicators to monitor market conditions. The
enhances our ability to monitor liquidity requirements, maximises Bank monitors its liquidity position and funding strategies on an
access to funding sources, minimises borrowing costs and ongoing basis, but recognises that unexpected events, economic
facilitates timely responses to liquidity events. We analyse and or market conditions, earnings problems or situations beyond
monitor our liquidity risk, maintain excess liquidity and access its control could cause either a short or long-term liquidity crisis.
diverse funding sources including our stable deposit base. It reviews its contingency funding plan in the light of evolving
The Board approves the Bank’s liquidity policy and contingency market conditions and stress test results.
funding plan, including establishing liquidity risk tolerance levels. The To monitor liquidity and funding, Treasury prepares a liquidity
ALCO, in conjunction with the Board and its Committees, monitors worksheet twice a month that project sources and uses of funds.
our liquidity position and reviews the impact of strategic decisions on The worksheet incorporates the impact of moderate risk and
our liquidity. Liquidity positions are measured by calculating the Bank’s crisis situations. The worksheet is an integral component of the
net liquidity gap and by comparing selected ratios with targets as contingency funding plan. Although it is unlikely that a funding
specified in the liquidity risk management manual. crisis of any significant degree could materialise, we consider it
important to evaluate this risk and formulate contingency plans
should one occur.
Quantifications
The contingency funding plan covers: the available sources of
Access Bank has adopted both qualitative and quantitative
contingent funding to supplement cash flow shortages; the lead
approaches to measuring liquidity risk. Specifically, the Bank
times to obtain such funding; the roles and responsibilities of
adopted the following approaches:
those involved in the contingency plans; and the communication
(a) Funding and Liquidity plan; and escalation requirements when early warning indicators signal
(b) Gap Analysis; and deteriorating market conditions. Both short term and long term
funding crises are addressed in the contingency funding plan.
(c) Ratio Analysis.
The Funding and Liquidity plan defines the Bank’s sources
and channels of utilisation of funds. The funding liquidity risk
limit is quantified by calculating liquidity ratios and measuring/
monitoring the cumulative gap between our assets and liabilities.
The Liquidity Gap Analysis quantifies the daily and cumulative
gap in a business as usual environment. The gap for any given
tenor bucket represents the borrowings from, or placements to,
the market required to replace maturing liabilities or assets. The
Bank monitors the cumulative gap as a + or –20% of the total risk
assets and the gap as a + or –20% of total deposit liabilities.
Access Bank Plc 55

(l) (i) Maturity Profile of Assets and Liabilities: On-balance Sheet

The maturity profile of the assets and liabilities on the Group’s balance sheet is as follows:
up to 1 1–3 3–6 6–12 1–5 over 5 Carrying
month months months months years years Total Value
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Assets
Central Bank of Nigeria 16,235,110 8,989,421 170,762 – – – 25,395,293 25,395,293
Treasury bills 13,313,179 9,813,139 510,392 5,762,724 6,458,378 – 35,857,812 35,857,812
Due from other banks 88,188,260 8,763,335 249,243 549,063 5,432,224 – 103,182,124 103,182,124
Loans and advances
to customers 112,764,852 84,720,425 50,337,019 36,127,911 150,916,596 30,423,523 465,290,326 429,782,319
On-lending facilities – 970,938 87,672 150,177 5,274,762 16,202,229 22,685,778 22,685,778
Advances under
finance lease 14,744 38,282 21,568 112,587 2,897,212 – 3,084,393 3,084,393
Investment securities 1,151,851 708,021 2,690,920 1,322,850 875,931 112,916,388 119,665,960 119,665,960
Investment property – – – – 12,943,078 – 12,943,078 12,943,078
Investment in associates – – – – – – – –
Other assets 6,966,998 5,590,881 1,061,868 9,961,505 539,776 – 24,121,028 23,287,133
Property and Equipment 4,093,029 – 209,740 – 347,309 – 557,050 557,050
Equipment on lease – – – – 1,561,045 – 1,561,045 1,561,045
Goodwill – – – – 1,431,711 – 1,431,711 1,431,711
Total Assets
(expected dates) – (A) 242,728,023 119,594,443 55,339,184 54,018,121 200,652,902 168,883,002 841,165,674 804,823,772
Liabilities
Customer deposits 361,949,520 94,250,745 14,273,365 14,730,097 1,710,866 11,253 486,925,846 486,925,846
Due to other banks 13,429,601 33,002,082 5,679,645 – – 11,928,205 64,039,353 64,039,353
Debt securities in issue – – – – – – – –
Current income tax – 2,238,159 – 1,254,326 – – 3,492,485 3,492,485
Other liabilities 3,906,323 9,878,143 3,358,893 12,579,955 22,166,593 – 51,889,908 51,889,908
Deferred tax liability – – – 419,945 – 419,945 419,945
Total Liabilities
(expected dates) – (B) 379,285,444 140,340,067 23,399,395 29,134,500 29,152,222 28,141,687 629,453,315 629,453,315
Gap (136,557,422) (20,745,625) 31,939,788 24,883,621 171,500,681 140,691,316 211,712,359 175,370,457
56 Access Bank Plc

(l) (ii) Maturity Profile of Assets and Liabiities: On-balance Sheet

The maturity profile of the assets and liabilities on the Group’s balance sheet is as follows:
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Assets
Central Bank of Nigeria 61,041,748 664,315 2,886,638 – – – 64,592,701 64,592,701
Treasury bills 10,926,097 6,262,968 16,979 1,500 429 – 17,207,973 17,207,973
Due from other banks 33,153,640 13,824,105 46,199,274 88 – – 93,177,107 93,177,107
Loans and advances
to customers 93,157,987 66,737,243 31,400,847 61,907,316 149,052,215 11,197,349 413,452,957 383,778,168
On-lending facilities – 4,496 49,541 359,712 2,718,214 – 3,131,963 3,131,963
Advances under
finance lease 11,301 57,218 65,271 464,858 3,651,325 – 4,249,973 4,249,973
Investment securities 31,001,439 13,489,580 2,282,889 4,187,525 5,810,564 18,285,384 75,057,381 75,057,381
Investment in associates – – – – – 300,155 300,155 300,155
Other assets 5,718,898 2,561,118 116,237 11,411,720 – – 19,807,973 17,292,653
Deferred tax assets 13 – 1,599 1,338,269 399,670 – 1,739,551 1,739,551
Property and Equipment 132,422 956,472 14,220 32,637 12,789,379 14,019,860 27,944,990 27,944,990
Goodwill – – – – – 1,738,148 1,738,148 1,738,148
Total Assets
(expected dates) – (A) 235,143,545 104,557,515 83,033,495 79,703,625 177,994,971 45,540,896 725,974,047 693,783,938
Liabilities
Customer deposits 260,147,651 173,663,918 1,142,605 3,519,372 85,451 – 438,558,997 438,558,997
Due to other banks 430,280 27,061,341 15,724,454 289 477 – 43,216,841 43,216,841
On-lending facilities 650 2,878 30,535 230,706 2,064,976 802,219 3,131,964 3,131,964
Debt securities in issue – – 2,604,277 – – _ 2,604,277 2,604,277
Current income tax 58 – 2,604 6,979,367 – – 6,982,029 6,982,029
Other liabilities 3,595,020 2,512,221 851,062 16,613,748 7,332,609 1,123 30,905,783 30,905,783
Deferred tax liability – – – – 37,999 – 37,999 37,999
Total Liabilities
(expected dates) – (B) 264,173,659 203,240,358 20,355,537 27,343,482 9,521,512 803,342 525,437,890 525,437,890
Gap (29,030,114) (98,682,843) 62,677,958 52,360,143 168,473,459 44,737,554 200,536,157 168,346,048
Access Bank Plc 57

(l) (iii) Maturity Profile of Assets and Liabilities: On-balance Sheet

The maturity profile of the assets and liabilities on the Bank’s balance sheet is as follows:
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Assets
Central Bank of Nigeria 10,274,161 7,374,230 – – – – 17,648,392 17,648,392
Treasury bills 11,618,000 – – – – – 11,618,000 11,618,000
Due from other banks 72,177,480 – – – – – 72,177,480 72,177,480
Loans and advances
to customers 110,287,957 76,322,737 46,522,176 32,334,795 141,374,717 28,941,229 435,783,611 403,178,957
Advances under
finance lease 3,444 8,045 20,103 95,325 2,590,696 23,479 2,741,092 2,741,092
Investment securities 1,151,851 – 2,690,920 – – 112,968,849 116,811,620 116,811,620
Investment in subsidiaries – – – – – 24,261,123 24,261,123 24,261,123
Investment in associates – – – – – – – –
Other assets 10,429,434 3,857,601 174,412 8,439,029 – – 22,900,476 22,172,504
Deferred tax assets – – – – – – – –
Property and Equipment 4,087,845 – – – 5,782,804 9,290,862 19,161,511 19,161,511
Goodwill – – – – – – – –
Total Assets
(expected dates) – (A) 220,030,173 88,533,551 49,495,283 41,019,325 169,527,102 191,687,772 760,293,205 726,960,580
Liabilities
Customer deposits 328,618,920 92,149,398 10,663,440 8,278,228 832,129 – 440,542,115 440,542,115
Due to other banks 231,394 16,189,432 5,335,593 – 12,986,519 – 34,742,938 34,742,938
Debt securities in issue – – – – – – – –
Current income tax 2,959,976 – – – – – 2,959,976 2,959,976
Other liabilities 1,573,308 6,762,294 3,219,897 11,987,382 19,626,881 – 43,169,762 43,169,762
Deferred tax liability – – – 355,197 – – 355,197 355,197
Total Liabilities
(expected dates) – (B) 333,383,598 116,072,062 19,306,602 20,770,983 38,720,291 16,202,229 544,455,766 544,455,766
Gap (113,353,425) (27,538,510) 30,188,680 20,248,342 130,806,810 175,485,543 215,837,440 182,504,814
58 Access Bank Plc

(l) (iv) Maturity Profile of Assets and Liabiities: On-balance Sheet

The maturity profile of the assets and liabilities on the Bank’s balance sheet is as follows:
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Assets
Central Bank of Nigeria 57,989,812 253,112 – – – – 58,242,924 58,242,924
Treasury bills 10,926,086 – – – – – 10,926,086 10,926,086
Due from other banks 29,751,879 – 46,439,826 – – – 76,191,705 76,191,705
Loans and advances
to customers 90,985,906 66,651,094 29,989,928 51,696,700 136,051,471 9,991,341 385,366,441 360,387,649
On-lending facilities – 4,496 49,541 359,712 2,718,214 – 3,131,963 3,131,963
Advances under
finance lease 10,733 54,684 54,770 336,568 3,317,265 – 3,774,020 3,774,020
Investment securities 31,000,629 13,489,580 2,282,852 1,863,658 5,810,585 18,285,384 72,732,689 72,732,689
Investment in subsidiaries – – – – – 23,299,346 23,299,346 23,299,346
Investment in associates – – – – – 145,000 145,000 145,000
Other assets 5,717,909 2,561,560 115,815 7,556,668 – – 15,951,952 13,677,803
Deferred tax assets – – – 1,338,268 – – 1,338,268 1,338,268
Property and Equipment 51 – – 33,484 6,102,408 14,018,148 20,154,091 20,154,091
Goodwill – – – – – – – –
Total Assets
(expected dates) -(A) 226,383,005 83,014,527 78,932,732 63,185,058 157,573,119 65,739,219 674,827,660 647,574,719
Liabilities
Customer deposits 236,712,183 168,215,202 528,793 294,460 85,454 – 405,836,092 405,836,092
Due to other banks 328,899 23,011,332 15,685,452 – – – 39,025,683 39,025,683
On-lending facilities – 2,878 31,671 230,219 2,064,978 802,219 3,131,964 3,131,964
Debt securities in issue – – 2,604,277 – – – 2,604,277 2,604,277
Current income tax – – – 6,736,626 – – 6,736,626 6,736,626
Other liabilities 3,594,745 2,512,218 847,932 2,801,550 7,332,609 – 17,089,054 17,089,054
Deferred tax liability – – – – – – – –
Total Liabilities
(expected dates) -(B) 240,635,827 193,741,629 19,698,124 10,062,855 9,483,042 802,219 474,423,696 474,423,696
Gap (14,252,822) (110,727,102) 59,234,607 53,122,203 148,090,077 64,937,000 200,403,964 173,151,023
Access Bank Plc 59

(m) (i) Maturity Profile of Contingent liabilities: Off-balance Sheet

Age analysis of contingent liabilities is presented below:
Group
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Performance bonds and
financial guarantees 843,110 2,078,426 3,855,358 113,489,494 15,589,381 – 135,855,769 135,855,769
Contingent Letters
of credits 14,438,167 51,035,358 31,730,624 4,078,413 845,673 – 102,128,235 102,128,235
Guaranteed CP/Bankers
acceptances – – 66,918 – – – 66,918 66,918
Guaranteed facilities – – 830,500 – – – 830,500 830,500
Other commitments – – – – – – – –
15,281,277 53,113,783 36,483,400 117,567,907 16,435,055 – 238,881,422 238,881,422
Group
31 December 2009
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
financial guarantees 6,307,355 12,094,985 13,956,430 21,241,563 35,464,689 – 89,065,023 89,065,023
Contingent Letters of credits 2,858,585 15,989,502 19,975,288 4,096,735 5,392,035 – 48,312,145 48,312,145
acceptances – 233,037 – – – – 233,037 233,037
Guaranteed facilities – – 445,307 – – – 445,307 445,307
9,165,940 28,317,524 34,377,025 25,338,298 40,856,724 – 138,055,511 138,055,511
Bank
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Contingent Letters of credits 5,657,771 37,691,153 16,155,180 8,210,301 860,124 – 68,574,528 68,574,528
acceptances – – – – – – – –
Guaranteed facilities – – – – – – – –
7,906,656 49,219,556 47,753,988 73,327,345 16,244,386 – 194,451,931 194,451,931
Bank
31 December 2009
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Contingent Letters of credits 2,858,585 15,989,502 12,193,931 4,096,735 5,392,036 – 40,530,789 40,530,789
acceptances – – – – – – – –
Guaranteed facilities – – – – – – – –
9,165,941 28,084,487 26,150,361 21,379,398 40,856,724 – 125,636,911 125,636,911
60 Access Bank Plc

Operational risk management Level 2 refers to the management function carried out by
Operational Risk Management Group. It has direct responsibility
Operational risk is the risk of loss resulting from inadequate or failed
for formulating and implementing the Bank’s operational risk
internal processes, people, or systems, or from external events. Our
management framework including methodologies, policies and
definition of operational risk excludes regulatory risks, strategic
procedures approved by the Board.
risks and potential losses related solely to judgments with regard to
taking credit, market, interest rate, liquidity, or insurance risks. Level 3 refers to the operational function carried out by
all business units and support functions in the Bank. These
It also includes the reputation and franchise risk associated with
units/functions are fully responsible and accountable for the
business practices or market conduct in which the Bank is involved.
management of operational risk in their units. They work in
Operational risk is inherent in Access Bank’s global business activities
liaison with operational risk management to define and review
and, as with other risk types, is managed through an overall
controls to mitigate identified risks. Internal audit provides
framework designed to balance strong corporate oversight with
independent assessment and evaluation of the Bank’s operational
well-defined independent risk management.
risk management framework. This periodic confirmation of the
This framework includes: existence and utilisation of controls in compliance with approved
policies and procedures, provide assurance as to the effectiveness
• Recognised ownership of the risk by the businesses;
of the Bank’s operational risk management framework. Some of
• Oversight by independent risk management; and the tools being used to assess, measure and monitor operational
• Independent review by Corporate Audit. risks in the Bank include; a loss database of operational risk
events; an effective risk and control self-assessment process that
We seek to minimise exposure to operational risk, subject to
helps to analyse business activities and identify operational risks
cost trade-offs. Operational risk exposures are managed through
that could affect the achievement of business objectives; and key
a consistent set of management processes that drive risk
risk indicators which are used to monitor operational risks on an
identification, assessment, control and monitoring.
ongoing basis.
The goal is to keep operational risk at appropriate levels relative
to the characteristics of our businesses, the markets in which we
Operational risk framework
operate our capital and liquidity, and the competitive, economic
and regulatory environment. Notwithstanding these controls, The Bank’s current operational risk framework was implemented
Access Bank incurs operational losses. in 2007 to meet internal and regulatory requirements. There has
Our operational risk strategy seeks to minimise the impact that been significant investment in the implementation of improved
operational risk can have on shareholders’ value. The Bank’s measurement and management approaches for operational risk
strategy is to: to strengthen control, improve customer service, improve process
efficiencies and minimise operating losses. The Bank has applied
• Reduce the likelihood of occurrence of expected events and the Advanced Measurement Approach (AMA) under Basel II,
related cost by managing the risk factors and implementing which commenced from the beginning of 2009. It is neither
loss prevention or reduction techniques to reduce variation cost-effective nor possible to attempt to eliminate all operational
to earnings; risks. Events of small significance are thus expected to occur
• Minimise the impact of unexpected and catastrophic events and are accepted as inevitable with relevant budgeting for these
and related costs through risk financing strategies that will losses being exercised where appropriate. Events of material
support the Bank’s long term growth, cash flow management significance are limited and the Bank seeks to reduce the risk from
and balance sheet protection; these extreme events in a framework consistent with its agreed
risk appetite. Processes are in place to monitor management and
• Eliminate bureaucracy, improve productivity, reduce capital
future mitigation of such events.
requirements and improve overall performance through
the institution of well designed and implemented internal The role of the Independent Operational Risk department is to
controls. establish, implement and maintain the operational risk framework
for the modelling and managing of the Bank’s operational risk,
In order to create and promote a culture that emphasises effective
while reinforcing and enabling operational risk management
operational management and adherence to operating controls,
culture throughout the Bank. The aim is to integrate, based on
there are three distinct levels of operational risk governance
international norms and best practices, all operational risk activities
structure in Access Bank Plc.
and to compile a reliable operational risk profile contributing
Level 1 refers to the oversight function carried out by the to the Bank’s risk-reward profile. The key advantage introduced
Board of Directors, Board Risk Committee and the Executive by the current framework is the financial quantification and
Management. Responsibilities at this level include ensuring modelling of operational risks. This functionality has significantly
effective management of operational risk and adherence to the improved the Bank’s operational risk measurement and
approved operational risk policies. management capabilities.
Access Bank Plc 61

Management and control responsibilities Risk and control self assessments (RCSAs)
The first line of governance for managing operational risk rests with In order to pro-actively identify and actively mitigate risks, the
the business and operational risk management forms part of the operational risk framework utilises RCSAs. RCSAs are used at a
day-to-day responsibilities of all business unit management. Business granular level to identify relevant material risks and key controls
unit staff report any identified breakdowns in control and any risk mitigating these risks. The risks and controls are assessed on a
events that may result in financial loss and/or reputation damage. quarterly basis and relevant action plans are put in place to treat,
Amongst others, business management is responsible to ensure that tolerate, terminate or transfer the risks, taking into account the
processes for identifying and addressing ineffective controls relevant business risk appetites. The RCSA programme is extensive
and the mitigating of risk events are implemented and executed. and covers the entire Group. The Internal Audit further tests the
Operational Risk teams form the secondary line of governance by effectiveness of the RCSAs within the normal course of auditing
ensuring that processes to identify weaknesses are effective, and and relevant metrics are monitored and actioned where relevant.
identified weaknesses are acted upon. Operational Risk Group enables
further governance. Operational risk management is monitored
Key indicators (KIs)
at the Group Exco and ERMC meetings. The Bank’s operational risk
profile is presented to the Board quarterly. Control effectiveness A comprehensive set of KIs are in place across the Group, with
is monitored by the ERMC and by the Board; and the multi-layered relevant and agreed thresholds set by the business. KIs are
system of defences ensures pro-active operational risk management. monitored on a Group as well as business unit level, based on
significance. Threshold breaches are managed in accordance with
an agreed process across the Group.
Measuring and managing operational risk
The Bank recognises the significance of operational risk and is
Control issues (CIs)
committed to enhancing the measurement and management
thereof. Within the Bank’s operational risk framework, qualitative A CI is defined as any aspect of the design, implementation or
and quantitative methodologies and tools are applied (Group-wide) operation of a control that could result in the control objective
to identify and assess operational risks and to provide management not being achieved. A control objective is a statement that clearly
information for determining appropriate mitigating measures. describes what the control has been designed to achieve and can
refer to a control that requires strengthening or one that requires
implementation due to a change in business risk appetite. Failure
Risk event data collection and reporting
of a control can cause an event that leads to a financial loss or
A standard process is used for the recognition, capture, non-financial impact for the business. CIs identified are managed
assessment, analysis and reporting of risk events. This process and reported via a robust governance process.
is used to help identify where process and control requirements
are needed to reduce the recurrence of risk events. Risk events
Reporting
are loaded onto a central database and reported monthly to
the ERMC. The Group also uses a database of external public Business units are required to report on both a regular and an
risk events and is part of a consortium of international banks event-driven basis. The reports include a profile of the key risks to
that share loss data information anonymously to assist in risk their business objectives, RCAs, CIs, KI dashboards and operational
identification, assessment, modelling and benchmarking. risk events.
Key risk scenarios (KRS) Capital modeling

The Bank creates key risk scenarios (KRSs) that quantify the The model applied to determine the Group’s operational risk
Group’s operational risks. These KRSs are informed by internal capital has passed rigorous reviews, validation and approval in
data, including internal loss experience, risk and control accordance with the Bank’s model risk governance processes.
assessments, key indicators, audit findings, external loss data and Operational risk capital is allocated on a risk-sensitive basis to
is supplemented and validated by expert management judgment. business units in the form of Economic Capital (EC) charges,
In addition to serving as major input to the operational risk capital providing an incentive to improve controls and to manage these
model, KRSs also inform management of the Group’s operational risks within appetite levels. The AMA capital model methodology
risk landscape. KRSs are assessed on an expected and an extreme was designed, built and tested in 2008. The AMA model follows
impact basis and undergo rigorous challenge and validation an approach which is a combination of a key risk scenario (KRS)
through various parties and process committees. This robust based and a loss data approach. The AMA capital model enables
governance process ensures coverage and accuracy of the KRSs. the Group to use internal and external data to assess the level of
risk and calculate an EC and Regulatory Capital (RC) charge. KRSs
are the main driver of the model. The Bank believes that this is
currently the most effective way to measure unexpected loss. KRSs
also provide a forward looking view of operational risk.
62 Access Bank Plc

Allocating capital continuity risks by reviewing and testing recovery procedures.

Awareness campaigns are used to drive the business continuity
An allocation methodology is applied for allocating capital to
culture in the bank. A major development in our business
business units (for instance, an allocation from Access Bank to
continuity efforts in 2010 included an alliance with one of our
Commercial Banking Division, Retail Banking Division, Institutional
strategic partners for the provision of disaster recovery centers
Banking Group, etc). For each business unit, the allocation takes
across our branch network.
into consideration not only the size of the business unit, but also
measures of the business unit’s control environment, namely open
audit findings, RCAs, KIs and losses. This translates to a risk- Compliance risk management
sensitive allocation with the opportunity afforded to business to Compliance Risk is the risk of damage to Access Bank’s integrity as
identify actions to positively impact on their respective allocated a result of failure (or perceived failure) to comply with relevant laws,
operational risk EC. regulations, internal policies and procedures or ethical standards.
In addition to reputational damage, failure to effectively manage
Expected loss (EL) budgeting mitigation Compliance Risk can expose financial institutions to fines, civil and
criminal penalties, payment of damages, court orders and suspension
Basel II, under the AMA for operational risk makes provision for or revocation of licenses. A failure (or perceived failure) can adversely
mitigation of operational risk RC due to appropriate budgeting impact customers, staff and shareholders of Access Bank.
and managing for EL. A significant portion of the Bank’s business
already budgets for expected losses and while the Group has The Bank believes that fully embedded Compliance Risk
developed a methodology for the modelling of EL budgeting, Management preserves the trust its customers, shareholders
the Bank will not apply risk mitigation in the calculation of and staff have in the Bank and is important for the way Access
its operational risk exposure, until such time as policies and Bank does business. Managing Compliance Risk is fundamental
procedures are compliant to regulatory minimum requirements. to driving value. The pursuit of long term business sustainability
requires proper conduct of business activities in accordance with
the high ethical standards of Access Bank’s Business Principles.
Insurance mitigation These principles not only reflect laws and regulations, but are also
Insurance policies are used as a way to mitigate operational risks. based on the Bank’s core values: excellence, ethics, and passion
These policies are current and remain applicable in the Bank’s for customers, team work, trust and continuous learning.
operating environment. Insurance coverage is purchased at Group Ongoing changes and the continuous introduction of new
or cluster level to discharge statutory and regulatory duties, or to legislation have placed greater emphasis on the formal and
meet counterparty commitments and stakeholder expectations. structured monitoring of compliance with legal, regulatory,
The primary insurance policies managed by the Bank are: supervisory and internal requirements. Although legislative
• Comprehensive crime and electronic crime; changes place an administrative burden on the Bank, the
development of a framework provide the Bank with an
• Directors’ and officers’ liability; and opportunity to commit more openly to a culture of compliance
• Professional indemnity. within the Bank, its subsidiaries and divisions. In ensuring
In terms of the Advance Management Approach (AMA), the compliance with laws and regulations, the Bank put in place
Bank may adjust its operational risk exposure result by no more a robust Compliance Risk Management policy which set out
than 20% to reflect the impact of operational risk mitigants. guidelines to manage the Group’s compliance risk made
Globally, the use of insurance and other risk transfer mechanisms indispensable by the expansion of Access Bank activities in various
for operational risk is in a state of rapid development and jurisdictions, the evolving nature of the Global financial services
pioneering work is being done across the industry. While the Bank industry, the introduction of new legislation, and the update of
has developed a methodology for the modelling of insurance, existing legislation; as well as the increasing complexities of the
the Bank will not apply risk mitigation in the calculation of its Bank’s activities.
operational risk exposure until such time as insurance policies are An efficient infrastructure has been put in place to enable
compliant to regulatory minimum requirements. management to track current and emerging Compliance
Risk issues, to communicate these to internal and external
stakeholders, and to drive continuous improvement. Access Bank
Information security and continuity of business
understands that good Compliance Risk Management involves
Information security and the protection of confidential and understanding and delivering on the expectations of customers
sensitive customer data are a priority of Access Bank. The Bank and other stakeholders, thereby improving the quality of key
has developed and implemented an Information Security Risk relationships based on honesty, integrity and fairness.
Management framework that is in line with best practice. The
Our Compliance framework provides the platform for the
framework is reviewed and enhanced regularly to address
compliance programmes that are consistently applied across the
emerging threats to customers’ information. The Operational Risk
Bank to manage compliance risk. The framework has put in place
Management Group in conjunction with Information Technology
a Group-wide reporting compliance framework, encompassing
continues to coordinate global preparedness and mitigate business
both mandatory (regulatory) and non-mandatory (self regulatory)
Access Bank Plc 63

compliance. This framework includes a common approach to Strategic risk ultimately has two elements: doing the right thing at
commitment and accountability, policies and procedures, controls the right time; and doing it well.
and supervision, monitoring, regulatory change management,
It is the risk that results from adverse business decisions,
education and awareness and reporting.
ineffective or inappropriate business plans, or failure to respond to
We approach Compliance Risk Management on an enterprise changes in the competitive environment, business cycles, customer
and line of business level. The Compliance and Internal Control preferences, product obsolescence, regulatory environment,
function provides oversight of significant compliance risk issues. business strategy execution, and/or other inherent risks of the
The function also develops and guides the strategies, policies and business including reputational risk.
practices for assessing and managing compliance risks across the
The Bank’s appetite for strategic risk is continually assessed within
organisation. We re-established Compliance Resource Officers
the context of the strategic plan, with strategic risks selectively and
meetings set-up to develop, manage and integrate a compliance
carefully taken to maintain relevance in the evolving marketplace.
culture that meets global standards within the organisation.
Through education and communication efforts, a culture of Significant strategic actions, such as material acquisitions or capital
compliance is emphasised across the organisation. actions, are reviewed and approved by the Board. Using a plan
developed by Management, Executive Management and the Board
We also mitigate compliance risk through a broad-based approach
approve a strategic plan every three years. Annually, Executive
to process management and improvement. The lines of business
Management develops a financial operating plan and the Board
are responsible for all the risks within the business line, including
reviews and approves the plan. Executive Management, with
compliance risks. Compliance Risk officers, working in conjunction
Board oversight, ensures that the plans are consistent with the
with senior line of business executives, have developed key
Bank’s strategic plan, core operating tenets and risk appetite.
tools to address and measure compliance risks and to ensure
compliance with laws and regulations in each line of business. The following are assessed in their reviews: forecasted earnings
and returns on capital; the current risk profile and changes
Fig. 6. Compliance risk management framework required to support the plan; current capital and liquidity
requirements and changes required to support the plan; stress
testing results; and other qualitative factors such as market growth
rates and peer analysis. Executive Management, with Board
1 oversight, performs similar analyses throughout the year, and
7 Compliance will define changes to the financial forecast or the risk, capital or
Independent risk liquidity positions as deemed appropriate to balance and optimise
Review identification between achieving the targeted risk appetite and shareholder
returns and maintaining the targeted financial strength.
6 2 We use robust models to measure the capital requirements
Compliance Risk for credit, country, market, operational and strategic risks. The
manual assessment economic capital assigned to each line of business is based on
management
its unique risk exposures. With oversight by the Board, Executive
Management assesses the risk-adjusted returns of each business in
5 3 approving strategic and financial operating plans. The businesses
Compliance Compliance use economic capital to define business strategies, price products
risk risk and transactions, and evaluate customer profitability.
reporting 4 mitigation
Compliance
Reputational risk management
risk
monitoring Reputation risk management is essentially concerned with
protecting an organisation from potential threats to its reputation.
Most importantly, reputational threats should be dealt with
proactively and effects of reputational events should be minimised.
The ultimate aim of reputation risk management is to avert the
likelihood of any crisis and ultimately ensure the survival of the
Strategic risk management organisation. Nevertheless, managing reputational risk poses
Strategic risk is embedded in every line of business and is part particular challenges for many organisations. Access Bank, in
of the other major risk categories (credit, market, liquidity, responding to the challenges posed by reputational risk, has put
compliance and operational). in place a framework to properly articulate, analyse and manage
reputational risk factors.
Strategic risk relates to the consequences that arise when the
environment in which decisions that are hard to implement
quickly and hard to reverse has an unattractive or adverse impact.
64 Access Bank Plc

The potential factors which affect the Bank’s reputational risk • Loss of current or future customers;
profile include: • Loss of public confidence;
• A highly regulated financial services industry with high • Loss of employees leading to an increase in hiring costs, or
visibility and vulnerability to regulatory actions that may staff downtime;
adversely impact its reputation. (eg corporate governance • Reduction in current or future business partners;
crises);
• Increased costs of capitalisation via credit or equity markets;
• Consolidation activities ignited by the Central Bank of Nigeria
(CBN), resulting in a fusion of different cultures;
• Regulatory sanctions;
• Keen competition and largely homogeneous products and
• Increased costs due to government regulations, fines, or other
services have led customers not to perceive significant penalties; and
differences between financial service providers; and • Loss of banking licence.
• Given the financing nature of products and services they It is the Bank’s policy that, at all times, the protection of the Bank’s
provide, banks are not only exposed to their own reputation, reputation should take priority over all other activities, including
but also to the reputation of their clients. revenue generation. Reputational risk will arise from the failure
With banks operating and competing in a global environment, to effectively mitigate one or more of country, credit, liquidity,
risks emerging from a host of different sources and locations is market, regulatory and operational risk. It may also arise from the
difficult to keep up with and to know how best to respond if they failure to comply with social, environmental and ethical standards.
occur. The effects of the occurrence of a reputational risk event All employees are responsible for day-to-day identification and
include but are not limited to the following: management of reputational risk.
Fig. 7. Key Drivers of Reputational Risk
Backward-looking Forward-looking
Analysis Analysis
Credit Market
• Identification of • Identification of Corporate
Operational
past events with events that could
Or Business Objectives
high impact on affect reputation
Risk events stakeholder value going
expectations and forward;
market premium;
• Assessment of
Financial • Assessment of the likelihood and Corporate
Market Data severity and impact of such Social
eg Share duration of impact potential events Responsibility
Price on market premiums on reputation (CSR) Agenda
and reputation value; and
value; and
• Analysis of Audit/Risk &
• Assessment of the underlying Control Self
News Flows effectiveness of reputation Assessment
the response. drivers. (RCSA) findings
Outputs
Prioritization of key risks to reputation value

• Portfolio view of reputation risks
• Underlying risk drivers and
• Historical information of effectiveness
of response
Access Bank Plc 65

Risk identification process

Risk Drivers Trigger Events
In identifying reputational risk factors, the Bank makes use of
the output of the operational risk identification process. At the Corporate • Corporate frauds and scandals
end of the operational risk identification sessions, risk profiles governance and • Association with dishonest and
shall be derived and analysed. In analysing the report, the Head leadership disreputable characters as directors,
of Operational Risk Management Unit identifies risk events with
management
possible negative reputational impact on the Bank. These risk
events are analysed and those with a risk score of 3 and above
• Association with politically exposed
included in the reputational risk matrix report. The process relies persons
both on backward-looking and forward-looking analyses and • Incidence of shareholders conflict
enables the Bank to isolate the key events that could affect the and Board instability
Bank’s ability to meet stakeholders’ expectations.
Regulatory • Non-Compliance with laws and
The Bank shall identify a series of risk events with key drivers
compliance regulation
that have the greatest impact on its ability to meet stakeholder
expectations.
• Non submission of Regulatory
returns
These drivers include the following:
• Quality of corporate governance Delivering customer • Security failure
promise • Shortfall in quality of service/fair
• Management integrity
treatment
• Staff competence / support
• Bad behavior by employees
• Corporate culture
• Risk management and control environment Workplace talent • Unfair employment practices
and culture • Not addressing employee grievances
• Financial soundness / business viability
• Business practices • Uncompetitive remuneration
• Customer satisfaction Corporate social • Lack of community development
• Legal / regulatory compliance responsibility initiatives
• Contagion risk / rumours
Corporate culture • Lack of appropriate culture to
• Crisis management support the achievement of
• Transparency / accountability business objective
• Product innovation. • Ineffective risk management
practices
The forward-looking portion of the analysis considers the
information on risk drivers from the backward-looking analysis of • Unethical behaviours on the part of
historical data, and seek to identify potential future reputational staff and management
issues. This analysis is performed against the background of the • Lack of appropriate structure for
Bank’s corporate objectives, its corporate social responsibility employees to voice their concerns
agenda and external factors. Access Bank seeks to leverage
existing information from audit findings, risk and control self- Risk management • Inadequate risk management and
assessments, environmental scanning and scenario planning and control control environment
processes to the greatest extent possible. environment • Continuous violations of existing
policies and procedures
Compilation of trigger events
Financial soundness • Consistent poor financial
In order to assist in the identification of key reputational risk and business performance
events, triggers that would set off the risk drivers should be viability • Substantial losses from unsuccessful
compiled through workshops with participants from relevant investment
business units.
The following table illustrates few trigger events for relevant risk drivers. Crisis management • Inadequate response to a crisis or
even a minor incident
66 Access Bank Plc

Events data analysis • Time schedule of events must be maintained from the start;
Events data analyses are conducted to assess the gap between • Access Bank will consider how the facts of the situation will
performance of the Bank and the expectation of stakeholders. be presented to target audiences in a manner which will
The nature of the gap and the reasons for the gap is analysed win their acceptance and understanding. However, in no
for ensuing corrective action. Sample of events data analysed is case should false information or distorted perspectives be
furnished below: presented;
• Evaluating types of marketing efforts and implications for
• In limiting damage to the Bank’s reputation, emphasis should
Reputational Risk; be placed on demonstrating to target audiences;
• Analysis of number of accounts opened vs closed;
• The care Access Bank has taken to guard against the
recurrence of similar events; and
• Calling effort analysis;
• The actions taken by the Bank in response to the event and
• Complaint log analysis; and the effectiveness of those actions;
• Error resolution review. • Corporate Communications will be designated to handle all
communication matters, including media relations and public
Approach to managing reputation events announcements;
The Bank’s approach to managing reputation events, including • Actions taken should cater for any possible impact on cross-
any relevant strategy and policies, is approved by the Board or its border operations;
delegated committee and subject to periodic review and update • All relevant parties within the Bank will be adequately briefed
by senior management to ensure that it remains appropriate as the situation develops;
over time. In addition, the approach is well documented and • All actions taken should be based on a thorough knowledge
communicated to all relevant personnel.
of the facts of the situation, and be planned with a clear
understanding of the likely consequences (including any
Overall strategy / action plan follow-up action which may then be required).
Each reputation event is different and a precise list of action which The points mentioned above are not exhaustive and Access
may be taken to deal with the event, cannot be clearly specified. Bank tailors their strategy and action plan to suit their specific
Below are some guidelines used in developing overall strategy and circumstances and needs.
the required action plan:
• Timely reports and escalation of any reputational event to Process
senior management by all staff to management in a bid to Access Bank has established a clear set of procedures for
formulate an action plan to deal with the reputational events. managing such reputational events (including pre-planning how
This will also enable the Bank to communicate the right certain situations may be handled).
message to the right people at the right time;
These include:
• The Bank will seek to gain time for planning action in advance
through early recognition of warning signs and emerging • Reputational events to be captured are defined through
threats of reputational events; pre-determined criteria, triggering conditions or hypothetical
scenarios, etc. In determining what types of events to be
• Although the detail of reputational events will vary from case
included, the Bank will have regard to the results of their
to case, a proper action plan covering some key areas should
internal processes for identifying and assessing reputation
be in place.
risk, as well as their vulnerability to reputation risk;
These include:
• Specify the process for identifying reputation events, including
– Clear and precise objectives to be achieved, must be set;
the authority for deciding whether a reputation event has
– The target audiences with whom the Bank will be occurred and for invoking procedures for managing the event;
communicating and their respective areas of interest or
• The impact of such events based on established standards
concern to be addressed, must be defined;
and criteria (with particular focus on the impact on the Bank’s
• Decide the key messages to get across to the target business and reputation) are measured;
audiences. While the messages for different audiences may
• Appropriate response actions on how to deal with the
vary, they should not be contradictory or inconsistent;
event in question and to protect the Bank’s reputation are
• Individual actions to be undertaken are coherent and mutually established and prioritised;
supporting of the overall strategy;
• All stakeholders that are affected by the event are notified
• Specific actions to be undertaken will conform to the agreed of the situation;
strategy and objectives; and
• Agreed actions will be implemented and stakeholders’
• All proposed actions must be timed and approved; reaction to actions taken are monitored;
Access Bank Plc 67

• Reassess the situation and, in case of need, modifying agreed • To maintain an adequate level of available capital resources as
actions; cover for the economic capital (EC) requirements, calculated
• Ongoing reporting to the Board and Senior Management of at a 99.95% confidence level;
the progress and results of implementing agreed actions; and • To generate sufficient capital to support asset growth;
• The post event review will be done and the lesson learnt will • To maintain an investment grade credit rating; and
be used to enhance the reputational risk management. • To achieve a return above the cost of equity.
Post-event reviews Capital management strategy

After a reputation event, the post-event review will be conducted The Bank’s capital management strategy is focused on maximising
by Internal Audit and Risk Management Division to identify shareholder value by optimising the level and mix of capital
any lessons learnt, or problems and weaknesses revealed, from resources. Decisions on the allocation of capital resources are
the event. Such reviews will be useful for providing feedback based on a number of factors including return on EC and on
and recommendations for enhancing the Bank’s reputation risk regulatory capital (RC), and are part of the internal capital
management process, and should at least be conducted on adequacy assessment process (ICAAP).
any major event affecting Access Bank. The Board and Senior
Management will be promptly informed of the results of any such
review conducted so that they can take appropriate actions to Importance of capital management
improve its approach to managing reputation risk. Capital is managed as a Board level priority in the Bank
which reflects the importance of capital planning. The Board
Capital risk management is responsible for assessing and approving the Bank’s capital
management policy, capital target levels and capital strategy.
Capital risk is the risk that the Bank’s total capital base is not
properly managed in a prudent manner. A capital management framework provides effective capital
planning, capital issuance, Basel II alignment, EC utilisation and
economic profit (EP) performance measurement criteria. The
Capital management objectives following diagram illustrates the process the Group follows
The Bank has a number of capital management objectives: to ensure end-to-end integration of the Bank’s strategy, risk
management and financial processes into the capital management
• To meet the capital ratios required by its regulators and the process. The purpose is to ensure that capital consumption in the
Bank internal ICAAP threshold; business divisions has an impact on performance measurement,
Fig. 8. Capital Management Process
Annual forecast
Medium Term Plans

Capital transactions Regulatory capital
• Retained profit • Calculation of Pillar 1 capital
Financial
• Assess capital supply alternatives requirements
Forecast • Review and challenge of Pillar 1
given market demand
requirements
• Equity and other capital
Capital demand
transactions issuance, including

Capital supply
Risk Group
refinancing of existing capital Economic capital
Appetite Strategy • Review and challenge business
transactions
• Securitisation transactions units’ demand for economic
capital
• Share buybacks/dividends
Performance • Calculation of Group economic
• Dividends from subsidiaries
Measurement capital
composition
– Assess adequacy of Pillar 1 risks
– Calculate additional risks
Stress capital supply Stress and scenario testing
given market stressed Stressed capital
capital requirement requirement
Capital management
68 Access Bank Plc

which in turn translates into management performance to specified requirements that seek to reflect the varying levels of
assessment and product pricing requirements and achievement of risk attached to assets and off-balance sheet exposures.
the overall strategy within risk appetite.
Capital adequacy ratio
Regulatory capital
The capital adequacy ratio is the quotient of the capital base of
In all the countries where Access Bank operates, banks are required the Bank and the Bank’s risk weighted asset base. In accordance
to hold a minimum capital level determined by the regulators. with Central Bank of Nigeria regulations, a minimum ratio of 10%
Access Bank and individual banking operations are directly is to be maintained.
supervised by the Central Bank of Nigeria and the respective
regulatory authorities in the countries in which the subsidiary
Capital allocation
banking operations are domiciled.
The allocation of capital between specific operations and activities
The Group’s lead regulator, the Central Bank of Nigeria, sets
is, to a large extent, driven by optimisation of the return achieved
and monitors capital requirements for the Group as a whole.
on the capital allocated. The amount of capital allocated to
In implementing current capital requirements, Central Bank of
each operation or activity is based primarily upon the regulatory
Nigeria requires the Group to maintain a prescribed ratio of total
capital, but in some cases the regulatory requirements do not
capital to total risk-weighted assets.
reflect fully the varying degree of risk associated with different
The Group’s regulatory capital is analysed into two tiers: activities. In such cases the capital requirements may be flexed to
• Tier 1 capital, which includes ordinary share capital, capital reflect differing risk profiles, subject to the overall level of capital
reserve, share premium, retained earnings, translation reserve to support a particular operation or activity not falling below the
and minority interests after deductions for other regulatory minimum required for regulatory purposes.
adjustments relating to items that are included in equity but Although maximisation of the return on risk-adjusted capital is
are treated differently for capital adequacy purposes. the principal basis used in determining how capital is allocated
• Tier 2 capital, which includes qualifying subordinated liabilities within the Group to particular operations or activities, it is not
and general provision allowances. the sole basis used for decision making. Account also is taken of
synergies with other operations and activities, the availability of
• The qualifying tier 2 capital cannot exceed tier 1 capital.
management and other resources, and the fit of the activity with
Banking operations are categorised mainly as trading book or the Group’s longer term strategic objectives.
banking book, and risk weighted assets are determined according
Access Bank Plc 69

Our risk management framework is focused on the future Analysis of Regulatory Capital, Risk-weighted Assets and
Determination of Capital Adequacy Ratio
We believe effective risk management is more than just the
Group Group
collection and analysis of data. It also encompasses the insights Dec-10 Dec-09
delivered by information which facilitate appropriate actions.
N’000 N’000
Access Bank benefits from having enhanced its Bank risk
Tier 1 Capital
management framework, which gives full coverage of a variety
Share capital 8,944,126 8,131,024
of risks.
Capital reserve 3,489,080 3,489,080
Our annual risk cycle is designed to give management relevant, Share premium 146,160,837 146,163,226
up-to-date information from which trends can be observed and Statutory reserve 16,306,810 14,367,094
assessed. The governance structure supporting our risk cycle is SMIEIS reserve 826,568 800,393
designed to deliver the right information, at the right time, to the Bonus issue reserve – 810,713
right people. In line with the industry’s increasingly sophisticated Retained earnings (1,140,641) (7,482,217)
management of risk, we continued to develop and embed our Less: Goodwill and intangible assets (1,431,711) (1,738,148)
risk appetite framework during 2010, particularly our risk appetite Total qualifying Tier 1 capital (A) 173,155,069 164,541,165
assessment techniques.
Tier 2 Capital
Accountability for risk management, and transparency of risk
Non controlling interest 699,332 858,292
issues are crucial to our success. Responsibilities for managing
Revaluation reserve – fixed assets 51,727 538,909
risk are allocated to all managers within the Group and risk
Translation reserve 32,618 669,535
management requirements have been embedded in our
General provision 62,654 45,655
performance management programme.
Total qualifying Tier 2 capital (B) 846,331 2,112,391
Ultimately, the success of our risk management framework will be Total regulatory capital (C) = (A+B) 174,001,400 166,653,556
determined by the extent to which it embeds in the corporate culture
and leads to demonstrably better outcomes. We are committed to
Risk-weighted assets
the continued development of our risk management framework.
On-balance sheet 549,541,781 465,766,720
Off-balance sheet 119,889,420 54,873,283
Total risk-weighted assets (D) 669,431,201 520,640,003
Risk-weighted Capital
Adequacy Ratio (CAR) = (C) / (D) 26% 32%
Fig. 9. Practice focused on the future
Enablers Outcomes Objectives
Integrated Risk Management Framework
Measurement &
methodology
Strategic ALM & Contain & manage
Risk Allocation of Optimize upside –
Operational planning & investment downside –
optimization limits & risk Improved
implementation capital allocation management Improved
budgets financial
oversight &
performance
active mitigation
Organisation &
governance
External Comply with Improved external

Solvency, Product dev. communication Performance regulation perceptions –
liquidity & design, pricing & & Pillar II mgt. & executive – Comfortable Enhanced
funding underwriting disclosure compensation compliance with relationship with
Basel II external parties
70 Access Bank Plc

Governance Business Review
Governance
Directors, Officers & Advisors
Mr Gbenga Oyebode, MFR Chairman

Dr Cosmas Maduka non-Executive Director
Mr Oritsedere Otubu non-Executive Director
Dr Adewunmi Desalu non-Executive Director
Dr Babatunde Folawiyo non-Executive Director
Mr Emmanuel Chiejina non-Executive Director
Dr Mahmoud Isa-Dutse non-Executive Director
Mrs Mosunmola Belo-Olusoga non-Executive Director
Mr Aigboje Aig-Imoukhuede Group Managing Director/CEO
Mr Herbert Wigwe Group Deputy Managing Director
Mr Taukeme Koroye Executive Director
Mr Okey Nwuke Executive Director
Mr Obeahon Ohiwerei Executive Director
Mr Ebenezer Olufowose Executive Director
Mr Sunday Ekwochi Company Secretary
Corporate Head Office

Access Bank Plc
Telephone: +
234 01 262 1040-41
+234 01 264 1517-72
Email: info@accessbankplc.com
Website: www.accessbankplc.com
Independent Auditors
Audit Partner: Kabir Okunlola
KPMG Professional Services
22A, Gerrard Road, Ikoyi, Lagos
Telephone: +234 1 271 8955
Website: www.kpmg.com
Registrars
United Securities Limited
14 Idowu Taylor Street
Telephone: +
234 01 730 898
+234 01 730 891
Access Bank Plc 71

Board of Directors
Mr Gbenga Oyebode, MFR Dr Cosmas M. Maduka, D.BA

Chairman Non-Executive Director
Mr Gbenga Oyebode is the Managing Partner of Aluko & Oyebode Dr Cosmas Maduka D.BA (Honoris Causa UNN) is the current
(Barristers, Solicitors and Trademark Agents) with decades of President/Chairman of the Board of Directors, Coscharis Group. He is
experience in project finance; corporate law; energy and natural an industrialist and philanthropist of great repute.
resources law; telecommunications and aviation law. He is the He is a member of the Electric Power Reform Implementation
Chairman, Okomu Oil Palm Plc and also serves on the Board of MTN Committee in Nigeria; a Trustee Board Member of the Human
Nigeria and Crusader Insurance Plc. Development Fund of the United Nations Development Programme
Mr Oyebode holds a Master of Laws from University of Pennsylvania, (UNDP).
Philadelphia (1982) and a Bachelor of Laws degree from the University As an astute businessman, Dr Cosmas has contributed immensely
of Ife (1979). towards the socio-economic growth and development of the nation.
He is a Barrister & Solicitor of the Supreme Court of Nigeria (admitted He is the Vice President of the Nigeria-Japan Association.
June 1980) and an Attorney-at-law of the Supreme Court of New York
State (admitted November 1983). He is also a member of the Nigerian
Bar Association and the American Bar Society of International Law.
Mr Emmanuel Ndubisi Chiejina Dr Adewunmi A. Desalu

Non-Executive Director Non-Executive Director
Mr Emmanuel Chiejina is the Chairman and CEO of AshBard Energy Dr Adewunmi A Desalu is the Managing Director, Botad General Ltd
Company Limited and currently serves on the board of STACO and a Director at the Peninsula Asset Management and Investment
Insurance Plc, F & C Group and Green Technologies Limited. He Company Ltd. He managed General Electric’s (GE) operations in
spent an active part of his career with Elf Petroleum Nigeria Limited Nigeria between 1979-1985.
(Total E&P) where he spent twenty-seven years and retired as Deputy Dr Adewunmi A Desalu is an alumnus of the prestigious
Managing Director in 2007. Massachusetts Institute of Technology (MIT), USA and a member of
Mr Emmanuel Chiejina is a graduate of Law from the University of the Institute of Electrical Electronics Engineering, USA. He is a qualified
Lagos (1975). He was variously educated at Cranfield Institute of Electrical Engineer.
Technology, European Institute of Business Administration (INSEAD),
University of London and London Business School.
72 Access Bank Plc

MRS Mosunmola Belo-Olusoga MR Oritsedere Samuel Otubu

Mrs Mosunmola Belo-Olusoga is the Principal Consultant/Programme Mr Otubu is the Executive Chairman of Senforce Insurance Brokers,
Director of The KRC Limited. She served on the Board of Asset and and a Director of DAAR Communications Ltd, STACO Insurance Plc
Resource Management Company and is the past Chairperson, and Food Emporium International, South Africa.
Equipment and Leasing Association of Nigeria.
He holds a Masters and Bachelors degrees in Finance and Accounting
She had an illustrious banking career spanning nearly 3 decades. She respectively from the Houston Baptist University, United States of
retired from Guaranty Trust Bank in 2006 as the Executive Director, America.
Investment Banking and was at various times responsible for Risk
Management, Corporate and Commercial Banking, Investment
Banking, Transaction Service and Settlements (Local and Foreign
Operations). She served as Acting Managing Director of Trust Bank of
Africa Limited in 2003.
Mosunmola is a graduate of Economics from the University of Ibadan
(1979). She qualified as a Chartered Accountant in 1983 winning
1st place merit award and also the award of the Society of Women
Accountants of Nigeria prize for best qualifying candidate. She is a
fellow of both the Institute of Chartered Accountants of Nigeria and
the Chartered Institute of Bankers of Nigeria.
Dr Babatunde Folawiyo Dr Mahmoud Isa-Dutse

Dr Babatunde Folawiyo is the Group Managing Director of Yinka Dr Mahmoud Isa-Dutse is a Director of Northern Nigeria Flour Mills Plc,
Folawiyo Group with business interests in Power, Energy, Oil and Kano. His professional banking experience spanned over two decades.
Gas sectors. He also serves as a Director on the board of MTN He retired in 2002 as an Executive Director at United Bank of Africa Plc
Nigeria Ltd, Africa’s leading telecommunications company. where he was at various times in charge of Credit Risk Management,
Tunde holds a Master of Laws from the University College London Investment Banking and Corporate Banking.
(1985); a Bachelor of Laws from the University College London Dr Mahmoud Isa-Dutse holds a PhD in Corporate Governance from
(1984) and a Bachelor of Science degree in Economics from the the Manchester Business School, University of Manchester; an MBA
prestigious London School of Economics. from the Wharton Business School, University of Pennsylvania, USA;
He was called to the Bar of England and Wales (Honorable Society and a BSc in Economics from Ahmadu Bello University, Zaria.
of the Inner Temple) in 1985. He started his law practice in Nigeria
with the firm of Ogunsanya and Ogunsanya, a firm where he
resigned in 1989 to become the Group Executive Director of Yinka
Folawiyo Group.
Access Bank Plc 73

Board of Directors (Cont.)
MR AIGBOJE AIG-IMOUKHUEDE MR HERBERT WIGWE

GROUP MANAGING DIRECTOR/CHIEF EXECUTIVE OFFICER GROUP DEPUTY MANAGING DIRECTOR
An alumnus of Harvard Business School Executive Management Herbert holds a BSc Degree in Accountancy from the University
Programme, Aigboje holds an LLB and a BL degree from the University of Nigeria, Nsukka, and a Masters Degree in Banking and
of Benin and the Nigeria Law School respectively. He is a Fellow of International Finance from the University College of North Wales.
the African Leadership Institute under the auspices of Aspen Institute, An Alumnus of Harvard Business School, he holds a Masters Degree
Colorado USA, and an Honorary Fellow of the Chartered Institute of in Financial Economics from the University of London and he is
Bankers (CIBN). He has enjoyed a distinguished banking career of over also a Fellow of the Institute of Chartered Accountants of Nigeria
20 years, more than 10 of which were spent at Guaranty Trust Bank (ICAN). Herbert has over two decades of banking experience,
Plc (GT Bank). In March 2002, Aigboje resigned from GT Bank to lead with over 10 years spent in Guaranty Trust Bank Plc (GT Bank).
a dynamic crop of accomplished bankers as the Group Managing He left his post as an Executive Director at GT Bank to champion,
Director/Chief Executive Officer of Access Bank Plc, with the mandate with Aigboje, the transformation of Access Bank. His experience
to transform it into a world-class financial services provider. covers Corporate/Institutional Banking, Commercial Banking and
Product Development. Herbert has led some of the industry’s
Aigboje’s visionary leadership has inspired Access Bank’s rapid and
significant syndication arrangements including the offshore funding
unprecedented growth over the past nine years, which has seen it
arrangement of over $350 million for LNG’s Train III project.
rank amongst the top 10 in Nigeria from a position of 69th in 2002.
In October 2007, Aigboje himself was ranked amongst the top 10
Most Respected CEOs in the annual PricewaterhouseCoopers ‘Most
Respected Companies and CEOs Survey’, a documented testament
of his leadership acuity. Aigboje is a principled professional of proven
integrity and a respected public speaker. He is a pastor and is happily
married with children.
74 Access Bank Plc

MR OKEY NWUKE
MR AUKEME EDWIN KOROYE EXECUTIVE DIRECTOR, INSTITUTIONAL BANKING DIVISION
EXECUTIVE DIRECTOR, OPERATIONS Okey holds an MBA (1998) in International Banking & Finance from
Taukeme is a 1981 graduate in Business Administration from the the University of Birmingham, UK, as a Chevening Scholar, and a BSc
University of Lagos and a Fellow of the Institute of Chartered Degree (1990) in Accounting from the University of Nigeria, Nsukka.
Accountants of Nigeria. He began his banking career with Nigeria He is an associate member of Chartered Institute of Taxation and
International Bank, a subsidiary of Citigroup (NIB) in 1987, having a Fellow of the Institute of Chartered Accountants of Nigeria. Mr
previously worked with PriceWaterhouse. At NIB, he worked in Nwuke’s professional banking career spans 17 years, during which
Corporate Finance, Corporate Banking, Internal Control, International he has gathered relevant experience in areas including Financial
Trade and Treasury Operations, and he rose to the position of Deputy Control, Institutional/Corporate Banking and Commercial Banking.
General Manager, Operations and Technology, before joining Access He began his career with Guaranty Trust Bank in 1991 in the Financial
Bank Plc in 2002. He has attended various training programmes, Control Unit and rose to the position of Assistant General Manager,
both locally and internationally, including IBFC training, INSEAD Commercial Banking Group East, before moving to Access Bank Plc
management and the Lagos Business School Computer programme. in 2002 to join the management team driving the Bank’s successful
He is an alumnus of Harvard Business School. transformation. He has attended several leadership and professional
development programmes at Harvard, INSEAD, Euromoney, IMD, and
Arthur D Little. He is an alumnus of Harvard Business School.
MR OBEAHON OHIWEREI MR EBENEZER OLUFOWOSE

EXECUTIVE DIRECTOR, COMMERCIAL BANKING DIVISION EXECUTIVE DIRECTOR, Financial Markets
Obeahon holds a Masters Degree in Business Administration and Ebenezer holds an MA Degree (1984) in International Economics from
a Bachelors Degree in Mathematics. He has close to two decades’ the University of Sussex, Brighton, UK (Sir Adam Thomas Scholar)
banking experience across key banking functions including Branch and a BSc Degree (1982) in Economics from the University of Lagos,
Services, Commercial Banking, Public Sector and Institutional/ Nigeria. He is an accomplished investment banker with 25 years’
banking experience which started in 1985 at NAL Merchant Bank
Corporate Banking.
Plc (NAL). He then moved on to work at First City Monument Bank
Obeahon began his professional banking career in Guaranty Trust (FCMB) and Guaranty Trust Bank Plc (GT Bank) where he worked as
Bank Plc (GT Bank) and rose to the position of manager within six Head of the Corporate Finance Group and Group Head, Investment
years. After leaving GT Bank in 1998, he has worked with various Banking, respectively. He was seconded to pioneer the take-off of GT
banks including Equatorial Trust Bank, Pacific Bank, Continental Bank Gambia as Managing Director/Chief Executive Officer where
Trust Bank and Standard Trust Bank, serving in various capacities he successfully obtained a banking licence from the Central Bank
including, in 2004, as the pioneer MD/CEO of Standard Trust Bank, of Gambia. Another success was his identification and placing of
Ghana. Obeahon has attended training programmes within and GT Bank Gambia’s shares with carefully selected local shareholders.
outside the country including Accenture Training programme (USA), In November 2002, he joined Nigeria International Bank Limited (a
Harvard Business School (USA), Manchester Business School (UK), subsidiary of Citigroup) as Executive Director and Head of Corporate
Finance and was later appointed Director of Citigroup in January
Lagos Business School, PricewaterhouseCoopers training and Arthur
2007.
Anderson and Co. He is an alumnus of Harvard Business School.
Ebenezer has attended various training programmes and courses
at renowned institutions including the International Law Institute,
Washington DC, Institute of Management Development, Lausanne,
Switzerland and the Lagos Business School, Nigeria. He has also
attended various leadership, corporate finance, credit and compliance
courses at Citigroup, NAL, FCMB and GT Bank. He is an alumnus of
Harvard Business School.
Access Bank Plc 75

Management Team
Executive Management Seyi Kumapayi

Chief Financial Officer, Domestic
Aigboje Aig-Imoukhuede
Group Managing Director/CEO Ifeanyi Okeke
Herbert Wigwe Group Head, Abuja CBD
Group Deputy Managing Director Dapo Olagunju
Taukeme Koroye Head, Group Treasury
Executive Director, Operations
Jo Osojie
Okey Nwuke Head, Retail Credit & Small Loans Risk Management
Executive Director, Institutional Banking Group
Obeahon Ohiwerei Raheem Owodeyi
Executive Director, Commercial Banking Group Head, Subsidiaries Compliance & Internal Controls
Ebenezer Olufowose Iyabo Soji-Okusanya
Executive Director, Financial Markets Group Head, Telecomms
Damos Solaru
Divisional Directors Head, Branch Services International
Obinna Nwosu Yinka Tiamiyu
Divisional Director, Retail Banking Division Head, Group Internal Audit
Roosevelt Ogbonna
Divisional Director, Commercial Banking Division Aliyu Tijani
Group Head, Credit Risk Management – Domestic
General Managers Assistant General Managers

Bolaji Agbede
Head, Group HR Kameel Adebayo
Head, Financial Control (Group Office)
Banjo Adegbohungbe
Group Head, Global Trade & Payments Ayobami Adegoke
Regional Head, Branch Services Abuja
Kalu Agwu
Group Head, Branch Services Group Kola Ajimoko
Group Head, Operational Risk Management
Pattison Boleigha
Head, Group Compliance & Internal Control Ben Akpaloo
Head, Compliance Unit
Tunde Coker
Group Chief Information Officer David Oludare Aluko
Group Head, CBG South-South
Victor Etuokwu
Head, Retail Banking Division Adedokun Aremu
Head, Remedial Asset, Port Harcourt & South Region
Innocent Ike
Super Regional Head, Federal Capital Territory, Abuja Abiola Bashorun
Team Lead, Cluster Products Team I
Peter Iwegbu
Head, IT Domestic and Shared Services Abubakar Bello
Regional Head, CBD North West 1
Angela Jide-Jones
Group Head, Private Banking Joe Egwuatu
Head, Central Processing & Head Office Controls
Greg Jobome
Chief Risk Officer Ifeanyi Emefiele
Head, IT Audit
Ashok Kumar
Senior Banking Advisor Kathleen Erhimu
Regional Head, CBG, V/I 1 Cluster
Speedwell Ngoka
Regional Head, CCBG North East Oladapo Fajemirokun
Head, Dangote Global Relationship
Adeyemi Odusanya
Group Head, Commercial Banking Group West Nixon Iwedi
Head, Food and Beverages
Segun Ogbonnewo
Group Head, Central Processing Centre Ola Isola
Head, Trade Finance (Access UK)
Ojini Olaghere
Group Head, General Resource Management Lookman Martins
Regional Head, CBG Mainland 1
Deputy General Managers Usman Mohammed
Regional Head, CCBG North West 2
Jerry Akpomudiare Nnamdi Nwankwo
Group Head, CBD Ikeja Group Head, Oil & Gas
Arese Alonge Fatai Oladipo
Group Head, Treasury Marketing Group Group Head, Corporate Counsel
Hadiza Ambursa Bode Olamide Ojeniyi
Group Head, Corporate Finance Group Group Head, Financial Institutions
Gboyega Oloyede
Ayodeji Awodein Head, Human Resources (Subsidiaries)
Group Head, Personal Care & Other Corporates
Dare Owolabi
Kayode Awolu Head, Development and Innovation
Group Head, Value Chain Management Jekwu Ozoemene
Segun Edun Group Head, CBD Port Harcourt
Head, Credit Risk Management – Institutional Banking & Subsidiaries
76 Access Bank Plc

Directors’ Report Business Review
Governance
The Directors are pleased to present their report on the affairs The principal activity of the Bank continues to be the provision
of Access Bank Plc (the “Bank”) together with its subsidiaries (the of money market activities, retail banking, granting of loans and
“Group”), and the Group and Bank audited financial statements advances, equipment leasing, corporate finance and foreign
and auditor’s report for the financial year ended 31 December 2010. exchange operations.
The Bank has nine foreign and three local subsidiaries namely Access
Legal Form and Principal Activity Bank (Gambia) Limited, Access Bank (Sierra Leone) Limited, Access
Bank (Zambia) Limited, The Access Bank UK Limited, Access Bank
The Bank was incorporated as a private limited liability company
(Ghana) Limited, Access Bank (Rwanda) SA, FinBank Burundi, Access
on 8 February 1989 and commenced business on 11 May 1989.
Bank Cote D’ivoire, Access Bank (RD Congo), United Securities
The Bank was converted to a public limited liability company on
Limited, Access Investment and Securities Limited and Access Homes
24 March 1998 and its shares were listed on the Nigerian Stock
and Mortgages Limited. It also has one associated company, Marina
Exchange on 18 November 1998. The Bank was issued a universal
Securities Limited, which was disposed of during the year.
banking licence by the Central Bank of Nigeria on 5 February 2001.
The financial results of all the subsidiaries have been consolidated
in these financial statements.
Operating Results
Highlights of the Group’s operating results for the year are as follows:
12 months 9 months 12 months 9 months
N’000 N’000 N’000 N’000
Gross earnings 91,142,064 84,980,554 79,065,123 75,847,752
Profit/(loss) before taxation 16,168,870 (3,481,565) 17,668,584 41,723
Tax charge (5,100,749) (920,601) (4,737,143) (922,475)
Profit/(loss) after taxation 11,068,121 (4,402,166) 12,931,441 (880,752)
Non controlling interests 176,442 207,584 – –
Profit/(loss) attributable to equity holders of the Bank 11,244,563 (4,194,582) 12,931,441 (880,752)
Appropriations
Transfer to statutory reserve 1,939,716 – 1,939,716 –
Interim dividend paid 3,577,650 – 3,577,650 –
Transfer to general reserve 5,727,197 (4,194,582) 7,414,075 (880,752)
11,244,563 (4,194,582) 12,931,441 (880,752)
Earnings/(loss) per share – Basic (k) 63 (26) 72 (5)
Earnings/(loss) per share – Adjusted (k) 63 (23) 72 (5)
Dividend per share (Declared) - k:
– Final declared in prior year – 70 – 70
– Interim in current year 20 – 20 –
Proposed dividend per share (k): 30 – 30 –
Shareholders’ fund 175,370,457 168,346,048 182,504,814 173,151,023

Total non performing loans and advances 37,673,139 80,671,438 31,228,154 61,764,163
Total non performing loans and advances to gross loans and advances (%) 8.10% 19.51% 7.17% 16.03%
Access Bank Plc 77

Directors’ Report (Cont.)
Interim Dividend Directors and their interests

The Board of Directors paid an interim dividend of 20k each on the The Directors who served during the year, together with their
issued share capital of 17,888,252,000 ordinary shares of 50k each. direct and indirect interests in the issued share capital of the
Bank as recorded in the register of Directors’ shareholding
Proposed Dividend and as notified by the Directors for the purposes of Sections
275 and 276 of the Companies and Allied Matters Act and
The Board of Directors proposed final dividend of 30k each on the
listing requirements of the Nigerian Stock Exchange are noted
issued share capital of ordinary shares of 50k each. Withholding tax
below:
will be deducted at the time of payment.
Number of Ordinary Shares of 50k each held as at 31-Dec-10 31-Dec-09

Direct Indirect Direct Indirect
G Oyebode – Chairman 65,021,987 63,356,888 59,110,898 57,682,635
A I Aig-Imoukhuede – Managing Director 23,458,468 514,958,528 21,325,880 333,194,614
H O Wigwe – Deputy Managing Director 23,458,466 514,958,528 21,325,879 333,194,614
C M Maduka – non-Executive Director 6,285,074 333,636,388 6,233,646 268,391,489
O S Otubu – non-Executive Director 15,690,593 19,421,795 23,355,086 17,671,178
T E Koroye – Executive Director 20,835,759 – 18,941,600 –
M Isa-Dutse – non-Executive Director 2,547,835 – 2,316,214 –
E Chiejina – non-Executive Director 5,853,630 – 5,321,482 –
O Nwuke – Executive Director 5,907,440 – 5,370,400 –
T Folawiyo – non-Executive Director 13,175,076 320,268,095 11,977,342 291,152,815
A Desalu – non-Executive Director 4,353,658 502,059 4,003,326 638,236
O Ohiwerei – Executive Director 8,029,340 – 7,299,400 –
E Olufowose – Executive Director 3,157,000 – 2,500,000 –
Retirement of Directors Directors’ Interest in Contracts

The Directors to retire every year shall be those who have been In accordance with the provisions of Section 277 (1) and (3) of
longest in office since their last election. In accordance with the the Companies and Allied Matters Act of Nigeria, the Board has
provisions of section 259 of the Companies and Allied Matters Act received Declaration of Interest from the under-listed Directors in
of Nigeria, Dr Cosmas Maduka and Dr Tunde Folawiyo retire by respect of the companies (vendors to the Bank) set against their
rotation and being eligible offer themselves for re-election. respective names.
Interest
Related director in entity Name of company Services
Mr Gbenga Oyebode Partner Aluko & Oyebode Legal services
Dr Cosmas Maduka Director Coscharis Group Companies Supply of cars, water, beverages and
computer equipment
Mr Oritsedere Otubu Director Staco Insurance Plc Underwriting services
Mr Oritsedere Otubu Director Senforce Insurance Brokers Ltd Insurance brokerage services
Mr Taukeme Koroye Director Petrodata Management Services Optix document management solution
Mrs Mosunmola Belo-Olusoga Director The KRC Ltd HR and Training services
Mr Tunde Folawiyo Director MTN Nigeria Limited Mobile telephone services
Mr Tunde Folawiyo Director Classic Insurance Brokers Limited Insurance brokerage services
Mr Aigboje Aig-Imoukhuede Director Marina Securities Limited Stock brokerage services
78 Access Bank Plc

Analysis of shareholding:
The shareholding pattern of the Bank as at 31 December 2010 was as stated below:
31 December 2010
Number of % of Number of % of
Range Shareholders Shareholders Holdings Shareholders
Domestic Shareholders
1–1,000 32,179 7.42 18,252,983 0.10
1,001–5,000 267,325 61.66 586,371,477 3.28
5,001–10,000 58,558 13.51 442,883,090 2.48
10,001–50,000 54,301 12.53 1,180,841,232 6.60
50,001–100,000 11,772 2.72 790,436,167 4.42
100,001–500,000 7,879 1.82 1,468,995,171 8.21
500,001–1,000,000 706 0.16 486,106,950 2.72
1,000,001–5,000,000 570 0.13 1,163,405,213 6.50
5,000,001–10,000,000 87 0.02 616,408,329 3.45
10,000,001 and above 126 0.03 6,581,444,418 36.79
433,503 100.00 13,335,145,030 74.55
Foreign Shareholders
500,001–1,000,000 4 0.00 2,587,200 0.01
1,000,001–5,000,000 9 0.00 2,587,239 0.01
5,000,001–10,000,000 0 0.00 – –
10,000,001 and above 3 0.00 4,547,932,009 25.43
16 0.00 4,553,106,448 25.45
Total 433,519 100.00 17,888,251,478 100.00
The shareholding pattern of the Bank as at 31 December 2009 was as stated below:
31 December 2009
Range Shareholders Shareholders Holdings Shareholders
Domestic Shareholders
1–1,000 126,122 28.47 112,919,805 0.69
1,001–5,000 178,665 40.33 469,831,237 2.89
5,001–10,000 60,645 13.69 440,492,804 2.71
10,001–50,000 57,731 13.03 1,295,903,934 7.97
50,001- 100,000 10,526 2.38 735,535,115 4.52
100,001–500,000 7,745 1.75 1,443,516,292 8.88
500,001–1,000,000 749 0.17 525,710,890 3.23
1,000,001–5,000,000 540 0.12 1,073,680,650 6.60
5,000,001–10,000,000 73 0.02 519,892,430 3.20
10,000,001 and above 80 0.02 5,661,775,200 34.81
442,876 99.98 12,279,258,357 75.50
Foreign Shareholders
500,001–1,000,000 4 0.00 3,141,508 0.02
1,000,001–5,000,000 21 0.00 64,998,741 0.40
5,000,001–10,000,000 21 0.01 174,831,507 1.08
10,000,001 and above 59 0.01 3,739,816,686 23.00
105 0.02 3,982,788,442 24.50
Total 442,981 100.00 16,262,046,799 100
Access Bank Plc 79

Directors’ Report (Cont.)
Substantial Interest in Shares

According to the register of members at 31 December 2010, no
individual shareholder held up to 5% of the issued share capital of
the Bank except the following:
31 December 2010 31 December 2009
shares held shareholding shares held shareholding
Stanbic Nominees Nigeria Limited 2,461,077,236 13.76 1,600,459,554 9.84
Access Bank Staff Investment Trust Scheme 1,030,910,287 5.76 977,781,982 6.01
Property and Equipment Donations and Charitable Gifts

Information relating to changes in property and equipment is The Bank identifies with the aspirations of the community and the
given in Note 22 to the financial statements. In the Directors’ environment in which it operates. The Bank made contributions
opinion, the net realisable value of the Group’s property and to charitable and non-charitable organisations amounting to
equipment is not less than the value shown in the financial N103,831,000 (December 2009: N156,220,000) during the year,
statements. as listed below:
Beneficiary Purpose N’000

Sokoto State Government Grant to support the State on Flood Disaster 20,000
Friends of Africa Financial support and sponsorship of workplace policy programme 18,043
Commonwealth Business Council Sponsorship of the African Investment Forum 10,055
Master Care Foundation Grant to support unemployed women and youth in Delta State 10,000
Global Business Coalition Sponsorship of AIDS and HIV Programme 9,413
Isiala Ngwa North Local Government, Abia State School Improvement Projects 7,307
Kambani Arts Sponsorship of Art exhibition 5,716
Idea Builders Access Tree Planting Initiative 5,454
The Murtala Muhammed Foundation Sponsorship of the annual Murtala Muhammed Memorial Lecture 2010 5,000
The Department of English and Literary Studies, Grant to support implementation of the
University of Nigeria, Nsukka department programmes 4,000
Kantin Kwari inferno victims, Kano Financial support 2,000
United Nations Environment Programme Initiative School Improvement Projects 1,241
Others N1 million and below 5,602
Total 103,831
Compliance with Central Bank of Nigeria’s Regulation on Divestment from non-banking subsidiaries
the Scope of Banking Activities The Bank has three non-banking subsidiaries in Nigeria which are:
Section 6(1) of the Central Bank of Nigeria Regulation on the United Securities Limited, Access Investment and Securities Limited
Scope of Banking Activities and Ancillary Matters requires and Access Homes and Mortgages Limited.
every bank currently operating under a universal banking United Securities Limited, a wholly owned subsidiary of Access
licence to submit to the Central Bank of Nigeria for approval a Bank Plc, is a Securities and Exchange Commission licensed provider
compliance plan duly approved by the Bank’s Board of Directors. of securities register and data administration services. The Company
The regulation requires banks to divest from all non-banking was acquired by the Bank in 2008 and currently has an authorised
businesses and apply for a new type of banking licence based share capital of N50 million. The Board of Directors has resolved to
on the decision of the Bank’s Board of Directors. sell the Company as a going concern to an acceptable core investor.
The Bank’s compliance plan duly approved by the Board of Access Investment and Securities Limited, a wholly owned
Directors on 28 October 2010 is as follows: subsidiary of Access Bank Plc, is the investment management
subsidiary of the Bank. The Company commenced operation in
Proposed type of banking licence 2008 and currently has an authorised share capital of N500 million.
The Board reviewed the options provided by the new licensing regime The Board of Directors resolved that the company would undergo
instituted by the Central Bank of Nigeria and resolved that the Bank members’ voluntary winding up except if a willing buyer is found
would apply for an International Commercial Banking licence. before the conclusion of the winding up process.
80 Access Bank Plc

Access Homes and Mortgages Limited, a wholly owned of such a person without subjecting the employee to any
subsidiary of Access Bank Plc, was incorporated in 2008 and disadvantage in career development. As at 31 December
licensed by CBN to carry on mortgage banking business in January 2010, the Bank had no staff with physical disability
2009 with an authorised share capital of N1 billion. (December 2009: one).
The Board of Directors resolved that the Bank will integrate the (ii) Health, safety and welfare of employees
operations of Access Homes and Mortgages Limited into its own
The Bank maintains business premises designed with a view
operations and the assets and liabilities of the company will be
to guaranteeing the safety and healthy living conditions of
transferred to the Bank.
its employees and customers alike. Employees are adequately
insured against occupational and other hazards. In addition,
Post Balance Sheet Events the Bank retains top-class hospitals where medical facilities
are provided for its employees and their immediate families
There were no post balance sheet events which could have
at its expense.
a material effect on the state of affairs of the Group as at
31 December 2010 or the financial performance for the year Fire prevention and fire-fighting equipment are installed in
ended on that date that have not been adequately provided for strategic locations within the Bank’s premises.
or disclosed. The Bank operates both a Group Personal Accident and the
Workmen’s Compensation Insurance covers for the benefit of
its employees. It also operates a contributory pension plan in
Human Resources
line with the Pension Reform Act 2004 for its employees.
(i) Employment of disabled persons
The Group operates a non-discriminatory policy in the Employee involvement and training
consideration of applications for employment, including those The Bank encourages participation of employees in arriving at
received from disabled persons. The Bank’s policy is that the decisions in respect of matters affecting their well being. Towards
most qualified and experienced persons are recruited for this end, the Bank provides opportunities where employees
appropriate job levels, irrespective of an applicant’s state of deliberate on issues affecting the Group and employee interests,
origin, ethnicity, religion or physical condition. with a view to making inputs to decisions thereon. The Bank
In the event of any employee becoming disabled in the places a high premium on the development of its manpower.
course of employment, the Group is in a position to arrange Consequently, the Bank sponsors its employees for various training
appropriate training to ensure the continuous employment courses, both locally and overseas.
Audit Committee
Pursuant to Section 359(3) of the Companies and Allied Matters Act of Nigeria, the Bank has an Audit Committee comprising three
Directors and three shareholders as follows:
1 Mr Oluwatoyin Eleoramo – Shareholder Chairman
2 Mr Alashi Steven Ola – Shareholder Member
3 Mr Idaere Gogo Ogan – Shareholder Member
4 Mr Oritsedere Otubu – Director Member
5 Dr Cosmas Maduka – Director Member
6 Mrs Mosunmola Belo-Olusoga – Director Member
The functions of the Audit Committee are as provided in Section 359(6) of the Companies and Allied Matters Act of Nigeria.
Auditors
KPMG Professional Services have indicated their willingness to continue in office as auditors in accordance with Section 357(2) of the
Companies and Allied Matters Act of Nigeria.
By ORDER OF THE BOARD

Plot 1665 Oyin Jolayemi Street
Victoria Island
Lagos
Sunday Ekwochi
Company Secretary
21 March 2011
Access Bank Plc 81

Directors’ Responsibilities & Statutory Audit Committee Report
Statement of directors’ responsibilities in Report of the statutory audit committee

relation to the financial statements for the
year ended 31 December 2010 To the members of Access Bank Plc:
In accordance with the provisions of Section 359(6) of the
The Directors accept responsibility for the preparation of the
Companies and Allied Matters Act of Nigeria, the members of the
annual Financial Statements set out on pages 87 to 139 that give
Audit Committee of Access Bank Plc hereby report on the financial
a true and fair view in accordance with Statements of Accounting
statements for the year ended 31 December 2010 as follows:
Standards applicable in Nigeria and in the manner required by the
Companies and Allied Matters Act of Nigeria, the Banks and Other — We have exercised our statutory functions under section
Financial Institutions Act of Nigeria and relevant Central Bank of 359(6) of the Companies and Allied Matters Act of Nigeria and
Nigeria regulations. acknowledge the cooperation of management and staff in the
conduct of these responsibilities.
The Directors further accept responsibility for maintaining
adequate accounting records as required by the Companies and — We are of the opinion that the accounting and reporting
Allied Matters Act of Nigeria and for such internal control as policies of the Bank and Group are in agreement with legal
the directors determine is necessary to enable the preparation requirements and agreed ethical practices and that the scope
of financial statements that are free from material misstatement and planning of both the external and internal audits for the
whether due to fraud or error. year ended 31 December 2010 were satisfactory and reinforce
the Group’s internal control systems.
The Directors have made assessment of the Company’s ability to
— We are satisfied that the Bank has complied with the provisions
continue as a going concern and have no reason to believe that
of Central Bank of Nigeria Circular BSD/1/2004 dated 18
the Bank will not remain a going concern in the year ahead.
February 2004 on “Disclosure of insider related credits in the
financial statements of banks”. We hereby confirm that an
aggregate amount of N58,866,046,399 (December 2009:
SIGNED ON BEHALF OF THE BOARD OF DIRECTORS BY: N49,200,334,879) was outstanding as at 31 December 2010 of
which N47,204,787 (December 2009: N35,420,589) was non
performing (See Note 43).
— We have deliberated on the findings of the external auditors
who have confirmed that necessary cooperation was received
from management in the course of their statutory audit and
Mr Aigboje Aig-Imoukhuede Mr Herbert Wigwe we are satisfied with management’s responses thereon and
21 March 2011 21 March 2011 with the effectiveness of the Bank’s system of accounting and
internal control.
Mr Oluwatoyin Eleoramo
Chairman, Audit Committee
4 March 2011
Members of the Audit Committee are:

1 Mr Oluwatoyin Eleoramo Shareholder Chairman
2 Mr Alashi Steven Ola Shareholder Member
3 Mr Idaere Gogo Ogan Shareholder Member
4 Mr Oritsedere Otubu Director Member
5 Dr Cosmas Maduka Director Member
6 Mrs Mosunmola Belo-Olusoga Director Member
In attendance:
Sunday Ekwochi–Secretary
82 Access Bank Plc

Corporate Governance Business Review
Governance
For the year ended 31 December 2010
INTRODUCTION between the Chairman and Managing Director. The Board is able to
reach impartial decisions as its Non-Executive Directors are a blend
Access Bank Plc (“the Bank”) recognises that good corporate of Independent and Non-Independent Directors with no shadow
governance is fundamental to earning and retaining the or alternate Directors, which ensures that independent thought is
confidence and trust of its stakeholders. It provides the structure brought to bear on decisions of the Board. The effectiveness of the
through which the objectives of the Bank are set and the means of Board derives from the diverse range of skills, competences of the
attaining those objectives. Executive and Non-Executive Directors who have exceptional degrees
of banking, financial and broader entrepreneurial experiences.
The Codes of Corporate Governance for Banks in Nigeria Post
Consolidation issued by the Central Bank of Nigeria, the Securities The Board is responsible for ensuring the creation and delivery of
and Exchange Commission’s Code of Best Practice and Access Bank’s sustainable value to the Bank’s stakeholders through its management
Principles of Corporate Governance collectively provide the basis of the Bank’s business. The Board is accountable to the shareholders
for promoting sound corporate governance in the Bank. The Bank’s and is responsible for the management of the Bank’s relationship
subsidiary entities are guided by these principles in their governance with its various stakeholders. The Board ensures that the activities
of the Bank are at all times executed within the applicable
frameworks and also meet the requirements of their respective
and regulatory framework. The Bank’s Principles of Corporate
jurisdictions to ensure local compliance. The Group’s governance
Governance, which is a set of principles which have been adopted
framework helps the Board to discharge its role of providing
by the Board as a definitive statement of Corporate Governance,
oversight and strategic counsel in balance with its responsibility to
defines such matters which have been reserved for the Board.
ensure conformity with regulatory requirements and acceptable risk.
The matters reserved for the Board include, but are not limited to,
Compliance with all applicable legislation, regulations, standards defining the Bank’s business strategy and objectives, formulating
and codes is an essential characteristic of the Bank’s culture. The risk policies and making decisions on the establishment of foreign
Board monitors compliance with these by means of management subsidiaries. Executive Management is accountable to the Board for
reports, which include information on any significant interaction the development and implementation of strategy and policies.
with key stakeholders. The Board meets quarterly and emergency meetings are convened
as may be required by circumstances. The Annual Calendar of Board
and Committee meetings are approved in advance and all Directors
Governance structure are expected to attend each meeting. The Annual Calendar of Board
Meetings includes a Board Retreat at an offsite location over three
Shareholders’ Meeting days to consider strategic matters and review the opportunities and
Shareholders meetings are duly convened and held in line with the challenges facing the institution. All Directors are provided with
Bank’s Articles of Association and existing statutory and regulatory notice, agenda and meeting papers in advance of each meeting
regimes in an open manner, for the purpose of deliberating on and, where a Director is unable to attend a meeting, he/she is
issues affecting the Bank’s strategic direction. This occurs through still provided with the relevant papers for the meeting while such
Director reserves the right to discuss with the Chairman the matters
a fair and transparent process and also serves as a medium
he/she may wish to raise at the meeting. Decisions are also taken
for fostering interaction between the Board, Management
between meetings via written resolutions circulated to all Directors in
and Shareholders. Attendance at the Annual General Meeting
accordance with the Articles of Association.
is open to shareholders or their proxies while proceedings at
such meetings are usually monitored by members of the press, The Company Secretary and his team continue to provide dedicated
representatives of the Nigerian Stock Exchange, Central Bank support to the Board ensuring that Directors receive timely and
of Nigeria and Securities and Exchange Commission. The Board accurate information required to fulfill their roles. Directors may at
ensures that shareholders are provided with adequate notice the Bank’s expense take independent professional advice on matters
of the Meeting. An Extraordinary General Meeting may also be pertaining to their role as Directors. In addition, the Directors receive
convened at the request of the Board or shareholders holding not monthly updates on developments in the business and regulatory
less than 10% of the Bank’s paid-up capital. environment. The Board ensures the regular training and education
of board members on issues pertaining to their oversight functions.
The Board: Composition and Role
The Board comprises fourteen members, which include the
Chairman and seven Non-Executive Directors, the Group Managing
Director/CEO; Group Deputy Managing Director and four Executive
Directors. In line with best practice, there is separation of powers
Access Bank Plc 83

Corporate Governance (Cont.)
The Standing Committees

The Board carries out its oversight function through its standing the committees. The Board’s four standing committees are:
committees each of which has a charter that clearly defines its the Board Risk Management Committee, the Board Audit
purpose, composition, and structure, frequency of meetings, Committee, the Board Human Resources Committee and
duties, tenure and reporting lines to the Board. In line with best the Board Credit & Finance Committee. The composition
practice, the Chairman of the Board does not sit on any of and responsibilities of the Committees are set out below:
Board Audit Board Risk Management Board Credit & Finance Board Human Resources
Name Committee Committee Committee Committee
Mr Gbenga Oyebode1 – – – –
Dr Cosmas Maduka1 – – C –
Mr Oritsedere Otubu1 C – M M
Dr Mahmoud Isa-Dutse2 M C M –
Mr Emmanuel Chiejina 2
– – M C
Dr Adewunmi Desalu1 – M M –
Mr Tunde Folawiyo1 – M M M
Mrs Mosunmola Belo-Olusoga1 M M M M
Mr Aigboje Aig-Imoukhuede 3
– M M M
Mr Herbert Wigwe3 – M M M
Mr Taukeme Koroye3 M – – –
Mr Okey Nwuke3 – – M –
Mr Obeahon Ohiwerei3 – – M –
Mr Ebenezer Olufowose3 – M M –
Keys
C Chairman of Committee
M Member
– Not a member
1 Non-Executive
2 Independent Non-Executive
3 Executive
Board Committees Composition
Access Bank Plc
Number of Board of Directors

Meetings 4 Regular, 1 Emergency
Board Human Board Credit & Board Audit Board Risk

Committee
Resources Committee Finance Committee Committee Management Committee
1. 4 Non-Executive 1. 7 Non-Executive 1. 3 Non-Executive 1. 4 Non-Executive

Directors Directors Directors Directors
Composition 2. Managing Director 2. Managing Director 2. 1 Executive Director 2. Managing Director
3. Deputy Managing 3. Deputy Managing 3. Deputy Managing
Director Director Director
4. 3 Executive Directors 4. 1 Executive Director
Number of
4 Regular 4 Regular 4 Regular, 1 Emergency 4 Regular
Meetings
84 Access Bank Plc

Board Audit Committee Board Credit and Finance Committee

The Committee assists the Board in fulfilling its oversight The Committee considers and approves loan applications above
responsibility relating to the integrity of the Bank’s financial certain limits (as defined by the Board from time to time) which have
statements and the financial reporting process; the been approved by the Management Credit Committee. It also acts
independence and performance of the Bank’s internal and as a catalyst for credit policy changes. The Committee oversees the
external auditors; and the Bank’s system of internal control administration and effectiveness of, and compliance with, the Bank’s
and mechanism for receiving complaints regarding the Board’s credit policies through the review of processes and reports on the
accounting and operating procedures. The Bank’s Chief recommendation of the Management Credit Committee and any
Internal Auditor and Chief Compliance Officer have access other means as it deems appropriate. The Committee met four times
to the Committee and make quarterly presentations to the during the 2010 financial year.
Committee. The Committee met five times during the 2010
financial year.
Board Human Resources Committee
The Committee advises the Board on its oversight responsibilities
Board Risk Management Committee
in relation to compensation, benefits and all other human resource
The Committee assists the Board in fulfilling its oversight matters affecting the Directors and employees of the Bank.
responsibility relating to establishment of policies, standards Specifically, the Committee is responsible for determining and
and guidelines for risk management, and compliance with executing the processes for Board appointments, recommending
legal and regulatory requirements in the Bank. In addition, appropriate remuneration for Directors (both Executive and non-
it oversees the establishment of a formal written policy on Executive) and approving remuneration for all other members of
the overall risk management system. The Committee also staff. The objectives of the Committee include ensuring that the
ensures compliance with established policies through periodic Bank’s human resources are maximised to support the long term
reviews of reports provided by management and ensures the success of the institution and to protect the welfare of all employees.
appointment of qualified officers to manage the risk function. The Committee met four times during the 2010 financial year.
The Committee evaluates the Bank’s risk policies on a periodic
basis to accommodate major changes in internal or external
Attendance at Board Committee Meetings
environment. The Committee met four times during the 2010
financial year. During the financial year ended 31 December 2010, the various
committees of the Board of Directors held four meetings each,
excluding the Board Audit Committee which held five meetings.
Directors’ attendance at these meetings are shown below:
Meeting
S/N Names of Directors BoD BRMC BCFC BHRC BAC
1 Mr Gbenga Oyebode 5 N/A N/A N/A N/A
2 Dr Cosmas Maduka 2 N/A 3 N/A N/A
3 Dr Mahmoud Isa–Dutse 5 4 4 N/A 5
4 Dr Adewunmi Desalu 5 1* 4 N/A N/A
5 Mr Oritsedere Otubu 5 N/A 4 4 5
6 Mr Emmanuel Chiejina 5 N/A 4 4 N/A
7 Mr Tunde Folawiyo 5 4 4 4 N/A
8 Mrs Mosunmola Belo-Olusoga 5 4 4 4 5
9 Mr Aigboje Aig-Imoukhuede 5 4 4 4 2***
10 Mr Herbert Wigwe 5 4 4 4 2***
11 Mr Taukeme Koroye 4 3** N/A N/A 5
12 Mr Okey Nwuke 5 3** 4 N/A N/A
13 Mr Obeahon Ohiwerei 5 3** 4 N/A N/A
14 Mr Ebenezer Olufowose 5 4 4 N/A N/A
Key
BoD – Board of Directors’ meeting BAC – Board Audit committee meeting
BRM – Board Risk Management Committee meeting * – Became member of BRMC as from October 2010
BCF – Board Credit and Finance Committee meeting ** – Ceased being a member of BRMC as from July 2010
BHR – Board Human Resources Committee meeting *** – Ceased being a member of BAC as from July 2010
Access Bank Plc 85

Corporate Governance (Cont.)
Executive Committee Succession Planning

The Executive Committee (EXCO) is made up of the Group Access Bank has a Succession Planning Policy which was approved
Managing Director as Chairman, the Group Deputy Managing by the Board at its 112th meeting held on 16 November, 2007.
Director and all the Executive Directors as members. The Succession planning is aligned to the Bank’s performance
Committee meets to deliberate and take policy decisions on management process. The policy identifies fifteen (15) key
the management of the Bank. It is primarily responsible for the positions, including Country Managing Director positions for
implementation of strategies approved by the Board and ensuring all Access Bank operating entities in respect of which there will
the efficient deployment of the Bank’s resources. be formal succession planning. The Bank’s policy provides that
potential candidates for the other positions shall be identified at
the beginning of each financial year.
Management Committees
These are standing committees made up of senior management Code of Ethics
of the Bank. The Committees are also risk driven and are set up to
identify, analyse and make recommendations on risks pertaining to Access Bank has in place, a “Code of Conduct” which specifies
the Bank’s day-to-day activities. They ensure that risk limits set by the expected behaviour of its employees. The Code requires that each
Board and the regulatory bodies are complied with and also provide Bank staff shall read the Code of Conduct document and sign a
input to the various Board Committees in addition to ensuring the confirmation that they have read and understood the document
effective implementation of risk polices. These Committees meet as upon employment. In addition, there is a re-affirmation process
frequently as risk issues occur and take actions and decisions within that requires each member of staff to confirm understanding of
the confines of their respective powers. and compliance with the Code of Conduct at least once a year.
An affirmation exercise was held in the 2010 financial year in
The management committees include: Management Credit accordance with the Bank’s policy. The Bank also has a Compliance
Committee, Asset and Liabilities Committee, Enterprise Risk Manual which provides guidelines for addressing violations/
Management Committee, Criticised Assets Committee and IT breaches and ensuring enforcement of discipline with respect to
Steering Committee. staff conduct. The Bank has a Disciplinary Guide which provides
sample offences/violations and prescribes disciplinary measures
Statutory Audit Committee to be adopted in various cases. The Head of Human Resources is
responsible for the design and implementation of the “Code of
In compliance with Section 359 of the Companies and Allied Conduct” while the Chief Compliance Officer is responsible for
Matters Act 1990, the Bank constituted a Standing Shareholders monitoring and ensuring compliance.
Audit Committee made up of three non-executive directors and
three shareholders. The composition of the Committee is as set
Whistle Blowing
out below.
Access Bank has a whistle blowing policy which provides the
1 Mr Oluwatoyin Eleoramo Shareholder Chairman
procedure for reporting suspected breaches of the Bank’s internal
2 Mr Alashi Steven Ola Shareholder Member policies, laws and regulations. There is a special e-mail address
3 Mr Idaere Gogo Ogan Shareholder Member and telephone hotline dedicated for whistle blowing. The Bank’s
4 Mr Oritsedere Otubu non-Executive Director Member Chief Compliance Officer (CCO) is responsible for monitoring and
5 Dr Cosmas Madukanon non-Executive Director Member reporting on whistle blowing.
6 Mrs Mosunmola non-Executive Director Member
Belo-Olusoganon Remuneration Report
The Report on Directors’ remuneration is as set out in page106.
86 Access Bank Plc

Independent Auditor’s Report Business Review
Governance
KPMG Professional Service the financial statements in order to design audit procedures that
22a Gerrard Road, Ikoyi are appropriate in the circumstances, but not for the purpose of
PMB 40014, Falomo expressing an opinion on the effectiveness of the entity’s internal
Lagos, Nigeria control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
Tel: +234 (1) 4632090-3, +234 (1)2694660-4, +234 (1) 2696040-4
estimates made by the directors, as well as evaluating the overall
Fax: +234 (1) 2691248, +234 (1) 2691775
presentation of the financial statements.
www.kpmg.com
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
To the Members of Access Bank Plc
Opinion
Report on the Financial Statements In our opinion, these financial statements give a true and fair view
We have audited the accompanying financial statements of Access of the financial position of Access Bank Plc (“the Bank”) and its
Bank Plc (“the Bank”) and its subsidiary companies (together “the subsidiaries (together “the Group”) as at 31 December 2010,
Group”), which comprise the balance sheets as at 31 December and of the Group’s and Bank’s financial performance and cash
2010, and the profit and loss accounts, statements of cash flows for the year then ended in accordance with Statements of
flows and value added statements for the year then ended, Accounting Standards applicable in Nigeria and in the manner
and the statement of accounting policies, notes to the financial required by the Companies and Allied Matters Act of Nigeria,
statements, the Group’s four year financial summary and the Banks and Other Financial Institutions Act of Nigeria, and relevant
Bank’s five year financial summary, as set out on pages 87 to 139. Central Bank of Nigeria circulars.
Directors’ Responsibility for the Financial Statements Report on Other Legal and Regulatory Requirements
The directors are responsible for the preparation of financial
Compliance with the requirements of Schedule 6 of the
statements that give a true and fair view in accordance with
Companies and Allied Matters Act of Nigeria
Statements of Accounting Standards applicable in Nigeria and in
the manner required by the Companies and Allied Matters Act of In our opinion, proper books of account have been kept by the
Nigeria, the Banks and Other Financial Institutions Act of Nigeria, Bank, so far as appears from our examination of those books
and relevant Central Bank of Nigeria circulars, and for such and the Bank’s balance sheet and profit and loss account are in
internal control as the directors determine is necessary to enable agreement with the books of accounts.
the preparation of financial statements that are free from material Compliance with Section 27 (2) of the Banks and Other Financial
misstatement, whether due to fraud or error. Institutions Act of Nigeria and Central Bank of Nigeria circular
BSD/1/2004
Auditor’s Responsibility
i. The Bank was charged a penalty for the contravention of the
Our responsibility is to express an opinion on these financial
provisions of a Central Bank of Nigeria’s Circular during the
statements based on our audit. We conducted our audit in
year ended 31 December 2010. Details are disclosed in note
accordance with International Standards on Auditing. Those
40 of the financial statements.
standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance ii. Related party transactions and balances are disclosed in note
whether the financial statements are free from material 43 of the financial statements in compliance with the Central
misstatement. Bank of Nigeria circular BSD/1/2004.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In
Lagos, Nigeria
making those risk assessments, the auditor considers internal
21 March 2011
control relevant to the entity’s preparation and fair presentation of
Access Bank Plc 87

Statement of Significant Accounting Policies
A summary of the principal accounting policies, applied consistently Inter-company transactions, balances and unrealised gains
throughout the current year and preceding annual financial years is set on transactions between Group companies are eliminated
out below. in preparing the Group financial statements. Unrealised
losses are also eliminated unless the transaction provides
(a) Basis of preparation
evidence of impairment of the asset transferred.
(i) These financial statements are the consolidated financial
statements of Access Bank Plc and its subsidiaries (ii) Associates
(hereinafter collectively referred to as “the Group”). The Associates are those entities in which the Bank has
financial statements are prepared under the historical significant influence, but not control, over the financial
cost convention modified by the revaluation of certain and operating policies. Investments in associates are
investment securities, and comply with the Statements accounted for using the equity method of accounting
of Accounting Standards issued by the Nigerian and are recognised at cost less impairment in the Bank’s
Accounting Standards Board (NASB), the requirements separate financial statements.
of the Companies and Allied Matters Act of Nigeria, the The Group’s share of the associates’ post acquisition
Banks and Other Financial Institutions Act of Nigeria, profits or losses is recognised in the profit and loss
and Relevant Central Bank of Nigeria guidelines and accounts. Its share of post acquisition reserves is
circulars. recognised in reserves. The cumulative post acquisition
The preparation of financial statements in conformity investments are adjusted against the carrying amount of
with generally accepted accounting principles requires the investments.
the use of estimates and assumptions that affect the When the Group’s share of losses equals or exceeds its
reported amounts of assets and liabilities and disclosure of interest in an associate including any other unsecured
contingent assets and liabilities at the date of the financial receivables, the Group’s carrying amount is reduced
statements and the reported amounts of revenues and to nil and recognition of further losses is discontinued
expenses during the reporting year. Although these except to the extent that the Group has incurred legal or
estimates are based on the directors’ best knowledge of constructive obligations or made payments on behalf of
current events and actions, actual results ultimately may an associate. Distributions received from an associate are
differ from those estimates. applied to reduce the carrying amount of the investment.
(ii) Reporting year Adjustments are also made to the carrying amount of
These Group financial statements have been prepared for the investment for changes in the Bank’s proportionate
twelve-month year ended 31 December 2010 while the interest in the associate arising from changes in equity
comparative year are for the nine-month year ended that have not been recognised in the associate’s profit and
31 December 2009. loss account. Such changes include those arising from the
revaluation of properties, plant and equipment and from
(b) Basis of consolidation foreign exchange translation differences. The Bank’s share
of those reserves is recognised directly in the equity of the
(i) Subsidiaries
Bank.
Subsidiary undertakings, which are those companies
in which the Bank, directly or indirectly, has an interest (c) Goodwill on consolidation
of more than half of the voting rights or otherwise has Goodwill represents the excess of the purchase consideration
power to exercise control over their operations, have over the fair value of the Group’s share of the separable net
been consolidated. Where necessary, accounting policies assets of subsidiaries acquired, at the date of the acquisition.
for subsidiaries have been changed to ensure consistency Goodwill is measured at cost, less accumulated impairment
with the policies adopted by the Bank. Separate disclosure losses. Goodwill is tested for impairment annually or more
is made for non-controlling interest. frequently, if events or circumstances indicate that it might
The consolidated financial statements combine the have been impaired. Impairment losses are recognised in the
financial statements of Access Bank Plc (“the Bank”) and profit and loss account in the year in which they arise.
its subsidiaries (“the Group”) wherein there is majority
(d) Segment reporting
shareholding and/or control of the Board of Directors
and management. The consolidated subsidiaries are A segment is a distinguishable component of the Group that
Access Bank (Gambia) Limited, Access Bank (Sierra Leone) is engaged either in providing related products or services
Limited, Access Bank (Zambia) Limited, The Access Bank (business segment), or in providing products or services within
(UK) Limited, Access Bank (Ghana) Limited, Access Bank a particular economic environment (geographical segment),
Rwanda, FinBank Burundi, Access Bank Cote d’ Ivoire, which is subject to risks and rewards that are different from
Access Bank (R.D. Congo), United Securities Limited, those of other segments.
Access Investment and Securities Limited and Access Segment information is presented in respect of the Group’s
Homes and Mortgages Limited. business and geographical segments. The Group’s primary
format for segment reporting is based on business segments.
88 Access Bank Plc

The business segments are determined by management Credit-related fees – spread systematically over the tenor
based on the Bank’s internal reporting structure. Segment of the credit facility where they constitute at least 10% of
results, assets and liabilities include items directly attributable the projected average annual yield of the facility, otherwise
to a segment as well as those that can be allocated on a credited to the profit and loss account at the time of
reasonable basis. occurrence.
(e) Foreign currency translation Income from advances under finance leases – recognised
on a basis that provides a constant yield on the outstanding
(i) Reporting currency
principal over the lease term.
The consolidated financial statements are presented in
Nigerian Naira, which is the Bank’s reporting currency. Commissions and fees – charged to customers for services
rendered – recognised at the time the service or transaction is
(ii) Transactions and balances effected.
Transactions denominated in foreign currencies are Investment income – recognised on an accrual basis and
translated into Naira at the rates of exchange ruling at credited to the profit and loss account.
the date of the transaction (or, where appropriate, the
rate of exchange in related forward exchange contracts). Dividend income – recognised when the right to receive the
Monetary assets and liabilities denominated in foreign dividend is established.
currencies are reported at the rates of exchange Financial advisory services, issuing house and registrar fees –
prevailing at the balance sheet date. Any gain or loss recognised over the time the service is provided.
arising from a change in exchange rates subsequent to
the date of the transaction is included in the profit and (g) Loans and advances
loss account. Loans and advances are stated net of provision for bad and
doubtful loans. Classification and provisioning is made in
(iii) Group companies
accordance with the Prudential Guidelines for Deposit Money
The results and financial position of all Group entities that Banks in Nigeria issued by the Central Bank of Nigeria for
have a currency different from the reporting currency are each account in accordance with the terms of the related
translated into the reporting currency as follows: facilities as follows:
– Assets and liabilities for each balance sheet presented
Non-specialised loans
are translated at the closing rate at the balance sheet
Interest and/or Principal
date, except for share capital and pre-acquisition outstanding for Classification Provision
reserves, which are translated at their historical rates;
Less than 90 days Performing 0%
– Income and expenses are translated at average 90 days but less than 180 days Substandard 10%
exchange rates (unless this average is not a reasonable 180 days but less than 360 days Doubtful 50%
approximation of the cumulative effect of the rates Over 360 days Lost 100%
prevailing on the transactions, in which case income
and expenses are translated at the rates prevailing at Specialised loans
the dates of the transactions); and
Loans are treated as specialised loans in accordance with
– All exchange differences arising on consolidation are
the criteria specified in the Prudential Guidelines for Deposit
recognised as translation reserves in shareholders’
Money Banks in Nigeria. The classifications and provisioning
funds.
for specialised loans take into consideration the cash flows
When a foreign operation is sold, such exchange and gestation periods of the different loan types. Specialised
differences are recognised in the profit and loss account loans, as defined by the Prudential Guidelines for Deposit
as part of the gain or loss on sale. Goodwill and other Money Banks in Nigeria, comprise:
adjustments arising on the acquisition of a foreign entity
are treated as assets of the foreign entity and translated i. Project Finance;
at the closing rate. ii. Object Finance;
(f) Income recognition iii. Income Producing Real Estate;
Credits to the profit and loss account are recognised as iv. Commercial Real Estate;
follows: v. Mortgage Loan;
Interest – recognised on an accrual basis except for interest vi. SME Loan;
on non-performing credit facilities, which is recognised on a
vii. Agricultural Finance (including farm and non-farm
cash basis.
credits); and
Non-credit-related fees – recognised when the successful viii. Margin Loan.
outcome of the assignment can be determined and the
assignment is considered substantially completed.
Access Bank Plc 89

Statement of Significant Accounting Policies (Cont.)
Project Finance
% of repayment on outstanding obligations due and/or days past due
% of repayment on Days past due for % of provision on total Interest in

Classification outstanding amount due aggregate instalments outstanding balance suspense
Performing <180 days 0% 0%
Watchlist 60%–75% >180 days 0% 100%
Substandard <60% 180 days–2 years 25% 100%
Doubtful <60% 2–3 years 50% 100%
Very Doubtful <60% 3–4 years 75% 100%
Lost <60% >4 years 100% 100%
Object Financing, Income Producing Real Estate and Commercial Real Estate
% of repayment on outstanding Days past due for % of provision on total Interest in
Classification obligation to amount due aggregate instalments outstanding balance suspense
Watchlist Between 60% and 75% >180 days 0% 100%
Substandard <60% 180 days–1 year 25% 100%
Doubtful <60% 1–2 years 50% 100%
Very Doubtful <60% 2–3 years 75% 100%
Lost <60% >3 years 100% 100%
Mortgage Loans
Days past due for mark-up/ % of provision on total Interest in
Classification interest for short term facilities outstanding balance suspense
Watchlist 90 days 0% 100%
Substandard >180 days 10% 100%
Doubtful >1 year 100%
Lost >2 years 100% 100%
The un-provided balance of mortgage loans classified as doubtful should not exceed 50% of the estimated net realisable value of the related securities
SME Financing – Short term loans

Days past due for % of provision on total Interest in
Classification mark-up/interest or principal outstanding balance suspense
Substandard 90 days–1 year 25% 100%
Doubtful 1–1.5 years 50% 100%
Very Doubtful 1.5–2 years 75% 100%
Lost >2 years 100% 100%
SME Financing – Long term loans

Classification interest or principal outstanding balance suspense
Substandard 90 days to 1 year 25% 100%
Doubtful 1 to 2 years 50% 100%
Very Doubtful 2 to 3 years 75% 100%
Lost >3 years 100% 100%
90 Access Bank Plc

Agricultural Financing – Short term loans

Classification interest or principal outstanding balance suspense
Doubtful 1 to 1.5 years 50% 100%
Very Doubtful 1.5 year to 2 years 75% 100%
Lost >2 years 100% 100%
Agricultural Financing – Long term loans

Days past due for % of provision on total Interest in
Classification aggregate instalments outstanding balance suspense
Doubtful 1 to 2 years 50% 100%
Very Doubtful 2 to 3 years 75% 100%
Lost >3 years 100% 100%
Unrealised mark-up/interest, in respect of non-performing General provision

loans and advances are credited into interest in suspense A minimum of 1% general allowance is made on all loans and
account, until they are realised in cash. Future interests advances, which have not been specifically provided for. The
charged on the accounts are credited to the same account Bank did not make a general provision on loans and advances in
until such facilities becomes performing. current year. This is in line with the revised Prudential Guidelines
Margin Financing and CBN circular BSD/DIR/GEN/CIR/04/013 dated 7 January
2011 and the Nigerian Accounting Standards Board (NASB)
All margin facilities are assessed for impairment by
publication dated 21 March 2011, which stated that a 1%
marking the underlying securities to market. The excess of
general provision on loans and advances is not required in the
loan amounts above the market value of the underlying
current year for Deposit Money Banks, whose loan portfolios
securities is provisioned and charged to profit loss account
have been subjected to extensive review by the CBN and
to accommodate actual and expected losses on the facility
the Nigeria Deposit Insurance Corporation (NDIC) since the
amounts and is reported in specific provisions for margin loans.
beginning of the current CBN reforms up till 31 December 2010.
Haircut adjustments
Write-off
The Bank holds collateral against loans and advances to
Bad debts are written off against the related provision for
customers in the form of executed and registered mortgage
bad and doubtful debts when it is determined that they are
interests over property, and other qualifying securities. No
uncollectible. Subsequent recoveries on bad debts written off
provision is recognised on loans and advances to customers
are credited to the profit and loss account. A facility is written
to the extent of haircut adjustments determined based on the
off only when full provision has been made on such a facility
weighted value of qualified collateral held against loans and
for at least one year.
advances to customers classified as lost for a maximum period
of one year as prescribed by the prudential guidelines. (h) Other assets
The weighted value of qualified collateral is adjusted to take Prepayments, receivables and other sundry debit balances
account of any possible future fluctuations in the value of the are classified as other assets and are stated at cost net of
collateral, occasioned by market movement. allowances for amounts doubtful of recovery.
The following haircut adjustments are applicable on all loan Allowances for doubtful accounts are made in line with the
types classified as lost: provisions of the CBN Prudential Guidelines for receivables
Haircut adjustments whose collection has been identified by management as
Description of Collateral weightings doubtful. When a receivable is deemed not collectible, it is
Cash 0% written off against the related allowance and subsequent
Treasury bills and government securities eg bonds 0% recoveries are credited to the profit and loss account.
Quoted equities and other traded securities 20%
Bank Guarantees and Receivables of blue chip companies 20% (i) Investment securities
Residential legal mortgage 50% The Group classifies its investments into the following
Commercial legal mortgage 50% categories: short term investments, long term investments,
Access Bank Plc 91

investments in subsidiaries and investment in associates. Investment properties are carried in the balance sheet at their
Investment securities (short-term and long-term investments) are market value and revalued yearly on a systematic basis at
initially recognised at cost and classified upon initial recognition. least once in every three years. Investment properties are not
subject to periodic charge for depreciation.
(i) Short term investments
When there has been a decline in value of an investment
Short term investments are investments that management
property, the carrying amount of the property is written down
intends to hold for not more than one year. Debt and
to recognise the loss. Such a reduction is charged to the profit
equity securities intended to be held for a period not
and loss account. Reductions in carrying amount are reversed
exceeding one year and investments held for trading are
when there is an increase, following a revaluation in accordance
classified as short term investment. Investments held for
with the Group’s policy, in the value of the investment property,
trading are those investments that the Group acquires
or if the reasons for the reduction no longer exist.
principally for the purpose of selling in the near term, or
holds as part of a portfolio that is managed together for An increase in carrying amount arising from the revaluation
short term profit taking. of investment property is credited to equity as revaluation
surplus. To the extent that a decrease in carrying amount
Short term investments in treasury bills and other offsets a previous increase, for the same property that has
marketable securities are stated at net realisable value. been credited to revaluation surplus and not subsequently
The gain/loss on revaluation is credited/charged to reversed or utilised, it is charged against that revaluation
profit and loss account during the year. Original cost is surplus rather than the profit and loss account.
disclosed.
An increase on revaluation which is directly related to a
(ii) Long term investments previous decrease in carrying amount for the same property
Long term investments are investment securities other that was charged to the profit and loss account, is credited
than short term investments. Long term investments may to profit and loss account to the extent that it offsets the
include debt and equity securities. previously recorded decrease.
Long term investment in marketable securities are On disposal of an investment property, the difference
carried at the lower of cost and net realisable value. Any between the net disposal proceeds and the carrying amount
discount or premium arising on bonds is included in the is charged or credited to the profit and loss account.
original cost of investment and is amortised over the Investment properties are disclosed separately from the property
period of purchase to maturity. Market value of long term and equipment used for the purposes of the business.
investments is disclosed. Interest earned whilst holding
investment securities is reported as interest income. (k) Property and equipment
Dividends receivable are included separately in dividend All property and equipment are initially recorded at cost. They
income when a dividend is declared. are subsequently stated at historical cost less depreciation.
(iii) Investments in subsidiaries Historical cost includes expenditure that is directly attributable
to the acquisition of the assets.
Investments in subsidiaries are carried in the Bank’s
Subsequent costs are included in the asset’s carrying amount
balance sheet at cost less provisions for impairment
or are recognised as a separate asset, as appropriate, only
losses. Where, in the opinion of the Directors, there has
when it is probable that future economic benefits associated
been impairment in the value of an investment, the loss
with the asset will flow to the Group and the cost of the asset
is recognised as an expense in the year in which the
can be measured reliably. All other repairs and maintenance
impairment is identified.
are charged to the profit and loss account during the financial
On disposal of an investment, the difference between the year in which they are incurred.
net disposal proceeds and the carrying amount is charged
Construction cost in respect of offices is carried at cost as
or credited to the profit and loss account.
capital work in progress. On completion of construction, the
(iv) Investments in associates related amounts are transferred to the appropriate category
Investments in associates are carried in the Bank’s balance of property and equipment.
sheet at cost less impairment. Depreciation is calculated on a straight line basis to write
down the cost of property and equipment to their residual
On disposal of an investment in associates, the difference
values over their estimated useful lives as follows:
between the net disposal proceeds and the carrying amount
is charged or credited to the profit and loss account. Leasehold improvements Over the lease year
Land and buildings 2%
(j) Investment property Furniture, fixtures and equipment 20%
An investment property is an investment in land or buildings Computer hardware 33.33%
held primarily for generating income or capital appreciation Motor vehicles 25%
and not occupied substantially for use in the operations of the
Group. An occupation of more than 15% of the property is
considered substantial.
92 Access Bank Plc

Capital work in progress, which represents fixed assets under income is recognised on a straight line over the lease
construction, is not depreciated. term. All indirect costs associated with the operating lease
Assets that are subject to depreciation are reviewed for are charged as incurred to the profit and loss account.
impairment whenever events or changes in circumstances (ii) Where a Group Company is the lessee
indicate that the carrying amount may not be recoverable. When the assets leased are subject to operating lease, the
An asset’s carrying amount is written down immediately to its total payments made under operating leases are charged
recoverable amount if the asset’s carrying amount is greater to profit and loss on a systematic basis in line with the
than its estimated recoverable amount. The recoverable time pattern of the Group’s benefit.
amount is the higher of the asset’s value less costs to sell or
the value in use. When the assets are subject to a finance lease, the Group
accounts for it by recording the lease as an acquisition of
Gains and losses on disposal are determined by comparing an asset and the incurrence of a liability.
proceeds with carrying amount. Gains and losses are included
in the profit and loss account for the year. At the beginning of the lease term, the Group records
the initial asset and liability at amounts equal to the fair
(l) Leases value of the leased asset less the present value of any
The Group classifies a lease as a finance lease if the following un-guaranteed or partially guaranteed residual value
conditions are met: which would accrue to the lessor at the end of the term
of the lease. The discount factor to apply in calculating
(a) The lease is non-cancellable, and
the present value of the un-guaranteed residual value
(b) Any of the following is applicable accruing to the lessor is the interest rate implicit in the
i. The lease term covers substantially (80% or more) the lease.
estimated useful life of the asset or, Where the Group cannot determine the fair value of the
ii. The net present value of the lease at its inception leased asset at the inception of the lease or is unable
using the minimum lease payments and implicit to make a reasonable estimate of the residual value
interest rate is equal to or greater than the fair value of the lease without which the interest rate implicit in
of the leased asset or, the lease could not be computed, the initial asset and
liability are recorded at amounts equal to the present
iii. The lease has a purchase option which is likely to be
value.
exercised.
The leased asset is depreciated or the rights under the
A lease that does not qualify as a finance lease as specified
leased asset are amortised in a manner consistent with
above is classified as an operating lease.
the Group’s own assets.
A Group company can be a lessor or a lessee in either a
The minimum lease payment in respect of each
finance lease or an operating lease.
accounting year is allocated between finance charge
(i) Where a Group Company is the lessor and the reduction of the outstanding lease liability. The
When assets are held subject to a finance lease, the finance charge is determined by applying the rate implicit
transactions are recognised in the books of the Group in the lease to the outstanding liability at the beginning of
at the net investments in the lease. Net investment in the year.
the lease is the gross investment in the lease discounted (m) Cash and cash equivalents
at the interest rate implicit in the lease. The gross
Cash and cash equivalents comprise cash and balances with
investment is the sum of the minimum lease payments
CBN, balances due from other banks and treasury bills.
plus any residual value payable on the lease. The
discount on lease is defined as the difference between (i) Cash and balance with CBN
the gross investment and the present value of the asset Cash comprises cash on hand, demand deposits
under the lease. denominated in Naira and foreign currencies and cash
The discount is recognised as unearned in the books of balances with the Central Bank of Nigeria (CBN). Cash
the Group and amortised to income over the life of the equivalents are short term, highly liquid instruments
lease on a basis that reflects a constant rate of return on which are:
the Group’s net investment in the lease. – Readily convertible into cash, whether in local or
Finance leases are treated as risk assets and the net foreign currency; and
investment in the lease are subject to the provisioning – So near to their maturity dates as to present
policy listed in note (g) above. insignificant risk of changes in value as a result of
When assets are held subject to an operating lease, changes in interest rates.
the assets are recognised as property and equipment
based on the nature of the asset and the Group’s normal
depreciation policy for that class of asset applies. Lease
Access Bank Plc 93

(ii) Due from other banks (iii) Commitments

Due from other banks represents cash held in other banks Commitments to extend credit or deliver on sales or
in Nigeria and banks outside Nigeria. purchases of foreign exchange in future are recognised as off
balance sheet engagements.
(n) Provisions
A provision is recognised where, as a result of a past event, (iv) Letters of credit
the Group has a present legal or constructive obligation that The Bank provides letters of credit to guarantee the
can be estimated reliably, and it is probable that an outflow of performance of customers to third parties. Confirmed letters
economic benefits will be required to settle the obligation. of credit for which the customer has not provided cash cover
are reported off balance sheet.
(o) Off balance sheet transactions/contingent liabilities
and contingent assets (p) Retirement benefits
A contingent liability is a possible obligation that arises from Pension costs
past events and whose existence will be confirmed only by
The Group operates a funded, defined contribution pension
the occurrence or non-occurrence of one or more uncertain
scheme for employees. Obligations in respect of the Group’s
future events not wholly within the control of the Group or
contributions to the scheme are recognised as an expense in
the Group has a present obligation as a result of past events
the profit and loss account on an annual basis.
which is not recognised because it is not probable that an
outflow of resources will be required to settle the obligation; (q) Deferred taxation
or the amount cannot be reliably estimated. Deferred taxation, which arises from timing differences in
Contingent liabilities normally comprise of legal claims under the recognition of items for accounting and tax purposes,
arbitration or court process in respect of which a liability is not is calculated using the liability method. Deferred taxation is
likely to crystallise. provided fully on timing differences, which are expected to
reverse at the rate of tax likely to be in force at the time of
A contingent asset is a possible asset that arises from past
reversal. Currently enacted tax rates are used to determine
events and whose existence will be confirmed only by the
deferred income tax.
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Group. A deferred tax asset is recognised to the extent that it is
probable that future taxable profits will be available against
Contingent assets are never recognised, rather they are
which the associated unutilised tax losses and deductible
disclosed in the financial statements when they arise.
temporary differences can be utilised. Deferred tax assets are
Transactions to which there are no direct balance sheet risks reduced to the extent that it is no longer probable that the
to the Group are reported and accounted for as off balance related tax benefit will be realised.
sheet transactions and comprise:
(r) Current taxation
(i) Acceptances
Income tax expenses/credits are recognised in the profit and
Acceptances are undertakings by the Bank to pay bills loss account. Current income tax is the expected tax payable
of exchange drawn on customers. The Bank expects on the taxable income for the year, using statutory tax rates
most acceptances to be settled simultaneously with the at the balance sheet date, and any adjustment to tax payable
reimbursement from customers. in respect of previous years.
Acceptances, which meet the conditions, set out in Central
(s) Debt securities
Bank of Nigeria (CBN) Guidelines on the treatment of bankers
acceptances and commercial papers are accounted for and Debt securities are recorded at face value less direct issue
disclosed as contingent liabilities. The income and expense costs. Repayments are deducted from the face value while
relating to these acceptances are recognised and reported net direct issue costs are amortised over the tenor of the
in the financial statements. underlying instrument. Interest costs are recognised in the
profit and loss account over the duration of the instrument.
(ii) Guarantees and performance bonds
(t) Ordinary share capital
The Bank provides financial guarantees and bonds to third
parties on the request of customers in form of bid and Share issue costs
performance bonds or advance payment guarantees. These Incremental costs directly attributable to the issue of new shares
agreements have fixed limits and generally do not extend are shown in equity as a deduction, net of tax, from the proceeds.
beyond the year stated in each contract.
(u) Dividends
The amounts reflected in the financial statements for bonds
and guarantees represent the maximum accounting loss Dividends on ordinary shares are appropriated from retained
that would be recognised at the balance sheet dates if earnings and recognised as a liability in the year in which
counterparties failed completely to perform as contracted. they are declared. Dividends that are proposed but not yet
declared are disclosed in the notes to the financial statements.
94 Access Bank Plc

(v) Sale of loans or securities contracts that have similar responses to changes in market
A sale of loans or securities without recourse to the Group is conditions and that are settled at a future date.
accounted for as a disposal and the assets excluded from the The Group engages in interest rate and cross currency
balance sheet. swap transactions with counterparties. The swaps are
Profits or losses on sale of loans or securities without initially recognised in the balance sheet at fair value, with
recourse to the Group are recognised by the Group when the a corresponding debit or credit as applicable in the profit
transaction is completed. and loss account. Any changes in fair value are recognised
immediately in the profit and loss account.
The Group regards a sale of loans or securities as without
recourse, if it satisfies all the following conditions. Any sale not The Group enters into sales or purchase of securities under
satisfying these conditions will be regarded as with recourse: agreements to deliver such securities at a future date
(forward contracts) at a fixed price. Securities sold under a
–– Control over the economic benefits of the asset must be forward contract agreement are accounted for as payable or
passed on to the buyer; receivable on execution of the contracts. Fees earned on the
–– The seller can reasonably estimate any outstanding cost; and transaction are accounted for as fee income in the profit and
–– There must not be any repurchase obligations. loss account.
A sale or transfer of loans or securities with recourse where (x) Earnings per share
there is an obligation to, or an assumption of, repurchase is not The Group presents basic earnings per share for its ordinary
treated as a sale, and the asset remains on the Group’s balance shares. Basic earnings per share are calculated by dividing
sheet, with any related cash received recognised as a liability. the profit or loss attributable to ordinary shareholders of
Profit arising from sale or transfer of loan or securities with the Group by the weighted number of ordinary shares
recourse to the seller is amortised over the remaining life. outstanding during the year.
However, losses are recognised as soon as they can be Adjusted earnings per share is determined by dividing the
reasonably estimated. profit or loss attributable to ordinary shareholders by the
weighted number of ordinary shares adjusted for any bonus
(w) Derivative financial instruments
shares issued.
A derivative is a financial instrument whose value changes in
response to the change in an underlying variable. It requires (y) Offsetting
little or no initial net investment relative to other types of Financial assets and liabilities are offset and the net amount
reported in the balance sheet when there is a legally
enforceable right to set off the recognised amounts and there
is an intention to settle on a net basis, or realise the asset and
settle the liability simultaneously.
Access Bank Plc 95

Consolidated Profit and Loss Account

Notes Dec-10 Dec-09 Dec-10 Dec-09
N’000 N’000 N’000 N’000
Gross Earnings 91,142,064 84,980,554 79,065,123 75,847,752
Interest and similar income 3 65,787,157 66,467,167 59,388,433 61,836,721

Interest and similar expense 4 (21,620,722) (30,241,144) (19,538,807) (28,722,991)
Net interest income 44,166,435 36,226,023 39,849,626 33,113,730
Fee and commission income 5 14,435,635 9,700,659 11,180,546 7,703,062

Fee and commission expense – – – –
Foreign exchange income 6 3,369,743 2,865,844 1,990,505 1,699,349
Income from investment 7(a) 6,776,285 4,649,890 6,416,458 4,470,014
Other income 7(b) 773,244 1,296,994 89,181 138,606
Operating income 69,521,342 54,739,410 59,526,316 47,124,761
Operating expenses 8 (48,644,315) (35,914,063) (38,797,403) (26,253,003)

Loan loss expenses 9(a) (4,524,369) (16,650,665) (2,917,513) (16,171,832)
Allowance for other assets and investments 9(b) (183,788) (4,880,816) (142,816) (4,658,203)
Group’s share of associate’s loss 20 – (775,431) – –
Profit/(loss) before taxation 16,168,870 (3,481,565) 17,668,584 41,723
Taxation 10 (5,100,749) (920,601) (4,737,143) (922,475)

Non-controlling interest 34 176,442 207,584 – –

Profit/(loss) attributable to equity holders 11,244,563 (4,194,582) 12,931,441 (880,752)
Appropriated as follows:
Transfer to statutory reserve 33 1,939,716 – 1,939,716 –
Interim dividend paid 3,577,650 – 3,577,650 –
Transfer to general reserve 5,727,197 (4,194,582) 7,414,075 (880,752)
11,244,563 (4,194,582) 12,931,441 (880,752)
Earnings/(loss) per share – Basic (k) 35 63 (26) 72 (5)

Earnings/(loss) per share – Adjusted (k) 35 63 (23) 72 (5)
Declared dividend 3,577,650 11,349,982 3,577,650 11,349,982

Dividend declared per share (k) 20 70 20 70
The Board of Directors have proposed a dividend a 30 kobo per share on the issued share capital of 17,888,252,000 ordinary shares of
50k each subject to the approval of the shareholders at the next annual general meeting.
The statement of accounting policies on pages 88 to 95 and notes on pages 99 to 136 form an integral part of these financial
statements.
96 Access Bank Plc

Consolidated Balance Sheet Business Review
Governance

N’000 N’000 N’000 N’000
Assets
Cash and balances with Central Bank of Nigeria 11 25,395,293 64,592,701 17,648,392 58,242,924
Treasury bills 12 35,857,812 17,207,973 11,618,000 10,926,086
Due from other banks 13 103,182,124 93,177,107 72,177,480 76,191,705
Loans and advances to customers 14 429,782,319 383,778,168 403,178,957 360,387,649
On-lending facilities 15 22,685,778 3,131,963 22,685,778 3,131,963
Advances under finance lease 16 3,084,393 4,249,973 2,741,092 3,774,020
Investment securities 17 119,665,960 75,057,381 116,811,620 72,732,689
Investment in subsidiaries 18 – – 24,261,123 23,299,346
Investment properties 19 12,943,078 1,404,000 12,943,078 1,404,000
Investment in associates 20 – 300,155 – 145,000
Other assets 21 23,287,133 17,292,653 22,172,504 13,677,803
Deferred tax asset 10 557,050 1,739,551 – 1,338,268
Property and equipment 22 25,390,076 27,944,990 19,161,511 20,154,091
Equipment on lease 23 1,561,045 2,169,175 1,561,045 2,169,175
Goodwill 24 1,431,711 1,738,148 – –
Total Assets 804,823,772 693,783,938 726,960,580 647,574,719
Liabilities
Customer deposits 25 486,925,846 438,558,997 440,542,115 405,836,092
Due to other banks 26 64,039,353 43,216,841 34,742,938 39,025,683
On-lending facilities 27 22,685,778 3,131,964 22,685,778 3,131,964
Debt securities in issue 28 – 2,604,277 – 2,604,277
Current income tax 10 3,492,485 6,982,029 2,959,976 6,736,626
Other liabilities 29 51,889,908 30,905,783 43,169,762 17,089,054
Deferred taxation 10 419,945 37,999 355,197 –
Total Liabilities 629,453,315 525,437,890 544,455,766 474,423,696
Net Assets 175,370,457 168,346,048 182,504,814 173,151,023
Capital and Reserves

Share capital 30 8,944,126 8,131,024 8,944,126 8,131,024
Capital reserve 31 3,489,080 3,489,080 3,489,080 3,489,080
Share premium 32 146,160,837 146,160,837 146,160,837 146,160,837
Other reserves 33 16,077,082 9,706,816 23,910,771 15,370,082
Equity attributable to equity holders of the Parent 174,671,125 167,487,757 182,504,814 173,151,023
Non-controlling interest 34 699,332 858,291 – –
Total Equity 175,370,457 168,346,048 182,504,814 173,151,023
Acceptances, bonds, guarantees and other obligations

for the account of customers 36 238,881,422 138,055,511 194,451,931 125,636,911
Total Assets and Contingent 1,043,705,194 831,839,449 921,412,511 773,211,630
The statement of accounting policies on pages 88 to 95 and financial statements and notes on pages 99 to 136 were approved by the
Board of Directors on 21 March 2011 and signed on its behalf by:
Mr Aigboje Aig-Imoukhuede
(Directors)
Mr Herbert Wigwe
Access Bank Plc 97

Statement of Cash Flows

N’000 N’000 N’000 N’000
Operating activities
Net cash flow from operating activities
before changes in operating assets 37 26,341,562 23,518,668 24,982,637 24,433,633
Changes in operating assets 38 48,486,160 1,106,800 17,565,678 (12,019,349)
Income tax paid 10 (b) (7,056,504) (2,097,088) (6,820,328) (1,991,133)
Net cash inflow from operating activities 67,771,217 22,528,379 35,727,987 10,423,151
Investing activities
Purchase of fixed assets 22 (4,390,231) (8,523,042) (3,375,639) (5,294,625)
Proceeds from sales of fixed assets 1,686,480 311,697 725,105 90,179
Purchase of equipment on lease 23 (152,000) (1,075,781) (152,000) (1,075,781)
Proceeds from sales of equipment on lease 45,331 – 45,331 –
Proceeds from sale of investment properties 240,845 – 240,845 –
Purchase of investment properties 19 (107,832) (1,404,000) (107,832) (1,404,000)
Purchase of long term investment (98,629,130) – (96,980,286) –
Proceeds from disposal of long term investments 28,453,034 17,078,001 26,627,498 19,021,979
Dividend income received 199,489 184,955 199,440 184,955
Additional investment in subsidiaries – – (1,083,097) (2,908,736)
Net cash outflow from investing activities (72,654,014) 6,571,830 (73,860,635) 8,613,971
Financing activities
Dividend paid during the year (3,577,650) (11,349,982) (3,577,650) (11,349,982)
Interest paid on borrowings (186,525) (605,526) (172,508) (605,526)
Repayment of borrowings (2,604,277) (5,700,565) (2,604,277) (5,700,565)
Deposit for shares by minority 140,856 606,264 – –
Net cash inflow from financing activities (6,227,596) (17,049,809) (6,354,435) (17,656,073)
Net increase in cash and cash equivalents (11,110,392) 12,050,400 (44,487,083) 1,381,049
Cash and cash equivalents, beginning of year 171,981,991 159,989,972 142,364,924 140,983,875
Effect of exchange rate fluctuations on foreign cash held (2,401) (58,382) – –
Cash and cash equivalent, end of year 39 160,869,198 171,981,990 97,877,841 142,364,924
The statement of accounting policies on pages 88 to 95 and notes on pages 99 to 136 form an integral part of these financial statements.
98 Access Bank Plc

Notes to the Group Financial Statements Business Review
Governance
1 General information 2 Segment analysis

The Bank was incorporated as a private limited liability (a) Business segment
company on 8 February 1989 and commenced business on
The Group operates the following main business segments:
11 May 1989. The Bank was converted to a public limited
liability company on 24 March 1998 and its shares were listed Institutional banking – The Institutional Banking division
on the Nigerian Stock Exchange on 18 November 1998. The provides bespoke comprehensive banking products and
Bank was issued a universal banking licence by the Central services to corporate organisations to meet the needs of
Bank of Nigeria on 5 February 2001. this segment of the Bank’s customers.
The principal activity of the Bank continues to be the Commercial banking – The Commercial Banking division
provision of money market activities, retail banking, granting has presence in all major cities in the country. It provides
of loans and advances, equipment leasing, corporate finance commercial banking products and services to the middle
and foreign exchange operations. and retail segments of the Nigerian market.
The Bank has nine foreign and three local subsidiaries Investment banking – The Investment Banking division
namely Bank (Gambia) Limited, Access Bank (Sierra Leone) provides innovative financing and risk management
Limited, Access Bank (Zambia) Limited, The Access Bank UK solutions and advisory services for the Bank’s corporate
Limited, Access Bank (Ghana) Limited, Access Bank (Rwanda) and institutional customers. The Group is also responsible
SA, FinBank Burundi, Access Bank Cote D’ivoire, Access Bank for formulation and implementation of financial market
(RD Congo), United Securities Limited, Access Investment and products for the Bank’s customers.
Securities Limited and Access Homes and Mortgages Limited. Retail banking – The Retail Banking division provides private
It also has one associated company, Marina Securities Limited banking services, private customer current accounts,
which was disposed of during the year. savings accounts deposits, investment savings products,
custody, credit and debit cards and customer loans.
Retail banking includes loans, deposits and other transactions
and balances with retail and public sector customers.
Access Bank Plc 99

Notes to the Group Financial Statements (Cont.)
(b) (i) The business segment result for 31 December 2010 is as follows
Institutional Commercial Investment Retail Unallocated
Banking Banking Banking Banking segments Total
N’000 N’000 N’000 N’000 N’000 N’000
Gross earnings
Derived from external customers 23,112, 512 50,653,411 11,739,149 5,308,332 328,660 91,142,064
Derived from other segments (5,359,986) 4,937,686 (57,473) 479,772 – –
17,752,526 55,591,097 11,681,676 5,788,104 328,660 91,142,064
Interest and similar expenses (12,414,797) (7,279,098) (1,183,690) (655,399) (87,738) (21,620,722)
5,337,728 48,311,999 10,497,986 5,132,706 240,922 69,521,342
(Loss)/profit on ordinary activities

before taxation (4,149,172) 10,292,681 8,217,424 1,981,467 (173,530) 16,168,870
Income tax expense (5,100,749)
Profit after tax 11,068,121
Other segment information

Depreciation (637,829) (1,649,121) (181,498) (637,168) 27,784 (3,077,832)
Share of associate’s loss – – – – – –
Assets and Liabilities

Tangible segment assets 329,713,240 231,625,398 224,719,553 12,607,718 6,157,862 804,823,772
Unallocated segment assets – –
Total Assets 329,713,240 231,625,398 224,719,553 12,607,718 6,157,862 804,823,772
Segment liabilities 174,339,498 361,495,960 51,595,603 35,409,323 6,612,930 629,453,315

Unallocated segment liabilities – – – – – –
Total Liabilities 174,339,498 361,495,960 51,595,603 35,409,323 6,612,930 629,453,315
Net Assets 155,373,742 (129,870,562) 173,123,950 (22,801,605) (455,068) 175,370,457
100 Access Bank Plc

(b) (ii) The business segment result for 31 December 2009 is as follows
Institutional Commercial Investment Retail Unallocated
Banking Banking Banking Banking segments Total
N’000 N’000 N’000 N’000 N’000 N’000
Gross earnings
Derived from external customers 43,653,445 22,504,791 8,040,742 9,920,200 861,376 84,980,554
Derived from other segments (4,499) (1,052) – 5,551 – –
43,648,946 22,503,739 8,040,742 9,925,751 861,376 84,980,554
Interest and similar expenses (25,734,523) (1,380,628) (694,717) (2,427,280) (3,996) (30,241,144)
17,914,423 21,123,111 7,346,025 7,498,471 857,380 54,739,410
Profit on ordinary activities

before taxation (4,721,564) (1,832,910) 2,665,704 162,986 260,050 (3,481,565)
Income tax expense (920,601)
Loss after tax (4,402,166)

Depreciation 468,734 2,318,005 875,451 224,525 30,088 3,916,803
Share of associate’s profit (775,431) (775,431)
Assets and Liabilities

Tangible segment assets 357,909,724 259,071,254 45,508,749 23,504,020 7,790,191 693,783,938
Unallocated segment assets – – – – – –
Total Assets 357,909,724 259,071,254 45,508,749 23,504,020 7,790,191 693,783,938
Segment liabilities 173,252,050 264,996,586 21,814,098 59,361,792 6,013,364 525,437,890

Unallocated segment liabilities – – – – – –
Total Liabilities 173,252,050 264,996,586 21,814,098 59,361,792 6,013,364 525,437,890
Net Assets 184,657,674 (5,925,332) 23,694,651 (35,857,772) 1,776,827 168,346,048
Access Bank Plc 101

(2) (c) By geographical segments

The Group’s business is organised along three (3) main geographical areas:
(i) Nigeria
(ii) Rest of Africa
(iii) Europe
Funds are ordinarily allocated between segments, resulting in funding cost transfers disclosed in operating income. Interest
charged on these funds is based on the Group’s cost of capital. There are no other material items of income or expense
between the business segments.
Internal changes and transfer pricing adjustments have been reflected in the performance of each segment. Revenue sharing
agreements are used to allocate external customer revenues to a segment on a reasonable basis.
2 (d) Segment report by geography location:

Nigeria Europe Rest of Africa Total
Dec-10 Dec-09 Dec-10 Dec-09 Dec-10 Dec-09 Dec-10 Dec-09
12 months 9 months 12 months 9 months 12 months 9 months 12 months 9 months
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
External revenue 79,069,399 76,129,727 1,487,491 554,257 10,585,174 8,296,570 91,142,064 84,980,554
Revenues from other segments – – – – – –
79,069,399 76,129,727 1,487,491 554,257 10,585,174 8,296,570 91,142,064 84,980,554
Interest expenses (19,272,649) (28,209,729) (28,842) (15,933) (2,319,231) (2,015,482) (21,620,722) (30,241,144)
Operating income/(loss) 59,796,750 47,919,998 1,458,649 538,324 8,265,943 6,281,088 69,521,342 54,739,410
(Loss)/profit before tax 17,695,551 (449,191) (187,383) (932,353) (1,339,298) (2,100,021) 16,168,870 (3,481,565)
Income tax expense (4,822,519) (965,423) 207,269 – (485,499) 44,822 (5,100,749) (920,601)
(Loss)/profit after tax 12,873,032 (1,414,614) 19,886 (932,353) (1,824,797) (2,055,199) 11,068,121 (4,402,166)

Depreciation 4,304,038 3,051,378 77,149 55,694 1,066,880 809,731 5,448,067 3,916,803

Assets and liabilities
Segment assets 664,448,397 637,925,649 68,075,438 20,316,511 72,299,937 35,541,778 804,823,772 693,783,938
Unallocated assets – – – – – – – –
Total Assets 664,448,397 637,925,649 68,075,438 20,316,511 72,299,937 35,541,778 804,823,772 693,783,938
Segment liabilities 506,313,843 472,317,673 62,865,199 5,901,347 60,274,273 47,218,870 629,453,315 525,437,890
Unallocated liabilities – – – – – – – –
Total Liabilities 506,313,843 472,317,673 62,865,199 5,901,347 60,274,273 47,218,870 629,453,315 525,437,890
Net Assets 158,134,554 165,607,976 5,210,239 14,415,164 12,025,664 (11,677,092) 175,370,457 168,346,048
3 Interest and similar income

Interest and similar income comprise:
N’000 N’000 N’000 N’000
(a) Source
Placement 1,609,688 1,802,481 1,485,891 1,118,604
Treasury bills and investment securities 7,337,625 3,946,092 4,925,906 3,614,898
Loans and advances 56,140,652 60,161,866 52,412,711 56,670,577
Advances under finance leases 699,192 556,728 563,925 432,642
65,787,157 66,467,167 59,388,433 61,836,721
102 Access Bank Plc


(b) Geographical location N’000 N’000 N’000 N’000
Earned in Nigeria 54,357,397 58,206,337 54,357,397 58,118,323
Earned outside Nigeria 11,429,760 8,260,830 5,031,036 3,718,398
65,787,157 66,467,167 59,388,433 61,836,721
4 Interest and similar expense

Interest and similar expense comprise: Group Group Bank Bank
(a) Sources N’000 N’000 N’000 N’000
Current accounts 962,598 1,135,818 879,797 1,028,010
Savings accounts 111,719 3,324,088 41,112 96,499
Time deposits 16,030,106 23,213,168 14,294,944 23,820,282
Inter-bank takings 2,826,620 1,468,049 2,808,317 2,742,841
Borrowed funds 186,525 605,526 172,508 605,526
Securities dealing 1,503,154 494,495 1,342,129 429,833
21,620,722 30,241,144 19,538,807 28,722,991
(b) Geographical location

Paid in Nigeria 17,215,790 26,659,903 17,215,790 26,655,908
Paid outside Nigeria 4,404,932 3,581,241 2,323,017 2,067,083
21,620,722 30,241,144 19,538,807 28,722,991
5 Fees and commission income

Fees and commission income comprise: Group Group Bank Bank
N’000 N’000 N’000 N’000
Credit related fees 1,035,942 252,891 355,350 145,598
Commission on turnover 2,443,433 1,836,336 2,276,090 1,733,891
Remittance fees 293,582 55,983 181,708 55,983
Letters of credit commission and fees 2,171,186 435,545 1,043,849 435,545
Facility management fees 4,767,211 2,775,699 4,215,262 2,775,699
Other fees and commission 3,724,281 4,344,205 3,108,287 2,556,346
14,435,635 9,700,659 11,180,546 7,703,062
6 Foreign exchange income

Foreign exchange income comprise: Group Group Bank Bank
N’000 N’000 N’000 N’000
Foreign currency trading 3,035,497 3,052,468 1,886,858 1,699,349
Exchange gain/(loss) 334,246 (186,624) 103,647 –
3,369,743 2,865,844 1,990,505 1,699,349
7(a) Income from investments

Income from investments comprise: Group Group Bank Bank
N’000 N’000 N’000 N’000
Dividend income 199,489 122,812 199,440 184,955
Profit on sale of securities 5,625,019 3,964,130 5,277,678 3,886,020
Rental income 951,777 562,948 939,340 399,039
6,776,285 4,649,890 6,416,458 4,470,014
Access Bank Plc 103

7(b) Other income

Other income comprise:
N’000 N’000 N’000 N’000
Derivative gain – 113,900 – 113,900
Gain on disposal of fixed assets 127,552 124,840 88,214 24,706
Other income 645,692 1,058,254 967 –
773,244 1,296,994 89,181 138,606
8 Operating expenses
(a) (i) Analysis of operating expenses
N’000 N’000 N’000 N’000
Staff salaries and allowances 15,616,036 10,165,567 11,542,019 6,899,092
Directors emoluments 531,626 504,262 261,663 191,426
Depreciation on fixed asset and equipment on lease 5,448,067 3,916,803 4,266,172 3,021,290
Administrative and general expenses 10,662,738 7,585,827 9,916,743 8,412,190
Repairs & maintenance 1,333,241 1,710,617 1,122,132 1,334,908
Auditors’ remuneration 278,664 182,772 144,000 89,500
Insurance 688,362 2,149,346 487,436 450,584
Professional fees 1,763,195 2,473,716 1,577,818 2,297,516
Deposit insurance premium 2,330,450 1,587,537 2,317,098 1,587,537
Rent & rates 1,538,743 1,132,348 815,613 777,865
Travelling 1,224,286 808,423 817,838 602,721
IT levy 394,752 2,528 176,686 –
Derivative loss 724,499 – 724,499 –
Loss on disposal of investment properties 84,041 – 84,041 –
Other operating expenses 6,025,615 3,694,317 4,543,645 588,374
48,644,315 35,914,063 38,797,403 26,253,003
(ii) Auditor’s remuneration represents fees for two audits of the Bank: for the period ended 30 June 2010 and year ended
31 December 2010.
(b) Staff and executive directors’ costs
(i) Employee costs, including those of executive directors, during the year amounted to:
N’000 N’000 N’000 N’000
Wages and salaries 15,199,755 9,891,711 11,245,365 6,778,003
Pension costs 416,281 273,856 296,654 121,089
15,616,036 10,165,567 11,542,019 6,899,092
(ii) The average number of persons in employment during the year is:
Number Number Number Number
Managerial 207 197 147 167
Other staff 1,547 1,432 1,170 1,244
1,754 1,629 1,317 1,411
104 Access Bank Plc

(iii) Employees, other than directors, earning more than N900,000 per annum, whose duties were wholly or mainly discharged
in Nigeria, received remuneration
Number Number Number Number
Below N900,000 31 20 – –
N900,001 – N910,000 9 – – –
N910,001 – N1,000,000 – 4 – –
N1,200,001 – N1,440,000 25 23 – 7
N1,490,001 – N1,500,000 34 – 34 –
N1,540,001 – N1,550,000 – – – –
N1,650,001 – N1,660,000 12 – – –
N1,990,001 – N2,010,000 66 28 – –
N2,340,001 – N2,370,000 8 10 – –
N2,370,001 – N2,380,000 – – – –
N2,610,001 – N2,620,000 22 11 – –
N2,990,001 – N3,000,000 1 2 – –
N3,100,001 – N3,300,000 5 – – –
N3,490,001 – N3,500,000 8 16 – –
N3,501,001 – N3,910,000 685 707 631 703
N3,910,001 – N3,920,000 – – – –
N3,980,001 – N3,990,000 – – – –
N4,100,001 – N4,310,000 6 25 – –
N4,310,001 – N4,320,000 4 – – –
N4,700,001 – N4,740,000 5 12 – –
N4,740,001 – N4,750,000 – – – –
N4,930,001 – N4,940,000 – – – –
N4,941,001 – N5,529,000 170 191 150 171
N5,430,001 – N5,440,000 – – – –
N5,530,001 – N5,740,000 5 – – –
N6,100,001 – N6,750,000 126 133 109 114
N6,750,001 – N6,760,000 – – – –
N6,900,001 – N7,200,000 8 3 – –
N7,431,001 – N7,489,000 201 110 107 110
N7,900,001 – N8,750,000 7 89 – –
N8,750,001 – N8,760,000 1 57 – –
N9,180,001 – N9,190,000 – – – –
N9,350,001 – N10,810,000 93 – 84 89
N10,810,001 – N10,820,000 – – –
N11,000,001 – N11,350,000 61 14 60 57
N11,350,001 – N11,360,000 2 – – –
N11,950,001 – N12,160,000 16 – – –
N12,620,001 – N12,630,000 1 14 – –
N13,261,001 – N14,949,000 53 62 53 62
N15,101,001 – N17,949,000 38 42 38 42
N18,101,001 – N21,940,000 19 25 19 25
N22,101,001 – N26,250,000 16 16 16 16
N26,251,001 – N30,260,000 15 14 15 14
N30,261,001 – N45,329,000 1 1 1 1
1,754 1,629 1,317 1,411
Access Bank Plc 105

(c) Directors’ remuneration:

Remuneration paid to Directors of the Bank (excluding pension contributions and other benefits) was as follows:
Bank Bank
12 months 9 months
Dec-10 Dec-09
N’000 N’000
Fees as directors 7,900 7,900
Other emoluments – –
Executive directors 152,400 116,125
Other directors 101,363 67,401
261,663 191,426
The director’s remuneration shown above includes:

Bank Bank
12 months 9 months
Dec-10 Dec-09
N’000 N’000
Chairman 9,370 8,063
Highest paid director 38,650 29,725
The emoluments of all other directors fell within the following ranges:
Bank Bank
12 months 9 months
Dec-10 Dec-09
Number Number
N5,000,001 – N9,000,000 – 3
N9,000,001 – N13,000,000 2 5
N13,000,001 – N20,000,000 5 4
N20,000,001 – N37,000,000 5 –
12 12
9 Diminution in value of assets

(a) Loan loss expenses comprise:
N’000 N’000 N’000 N’000
Loans and advances
– Specific (see note 14(g)) 12,639,028 28,763,023 9,696,254 27,784,816
– General (see note 14(i)) 20,964 (6,956,172) – (6,974,397)
– Margin facilities (see note 14(g)) (1,350,004) 7,868,645 (1,350,004) 7,868,645
– No longer required (see note 14(g)) (6,785,619) (12,935,811) (5,428,737) (12,418,211)
On-lending facilities
– General (see note 15(b)) – – – –
– No longer required – (51,435) – (51,435)
Advances under finance leases

– Specific (see note 16(a)) – – – –
– General (see note 16(c)) – – – –
– No longer required (see note 16(b)) – (37,586) – (37,586)
4,524,369 16,650,665 2,917,513 16,171,832
106 Access Bank Plc

(b) Allowance for other assets comprise:

– Allowance on other assets (see note 21(d)) 649,436 1,921,261 558,242 1,680,090
– Allowance no longer required (see note 21(d)) (1,061,608) (441,259) (969,506) (422,701)
Impairment charge/reversal on SME investment (see note 17(b)(xii)) (26,175) 144,616 (26,175) 144,616
Dimunition on underwriting commitment – 3,256,198 – 3,256,198
Impairment loss on investment property (see note 19) 315,698 – 315,698 –
Impairment loss on long term investment (see note 18) – – 264,557 –
Impairment charge on goodwill 306,437 – – –
183,788 4,880,816 142,816 4,658,203
10 Taxation
(a) Current income tax charge Group Group Bank Bank
N’000 N’000 N’000 N’000
Current income tax 3,136,242 1,102,186 2,640,306 905,183
Education tax 351,374 6,220 287,098 –
Prior year under provision 116,274 1,351,214 116,274 1,351,214
Income tax charge 3,603,890 2,459,620 3,043,678 2,256,397
Deferred tax charge/(credit) 1,496,859 (1,539,019) 1,693,465 (1,333,922)
Charge for the year 5,100,749 920,601 4,737,143 922,475
The Bank’s current income tax charge has been computed at the current company income tax rate of 30% (December 2009:
minimum tax rule). Education tax for the year has been charged at 2% of assessable profit.
Group current income tax charge includes statutory corporate income tax of subsidiary companies.
(b) Current income tax payable Group Group Bank Bank
N’000 N’000 N’000 N’000
Balance, beginning of year 6,982,030 6,586,353 6,736,626 6,471,362
Opening balances of previously unconsolidated subsidiary – 13,073 – –
Adjusted opening balance 6,982,030 6,599,426 6,736,626 6,471,362
Charge for the year (see note (a) above) 3,603,890 2,459,620 3,043,678 2,256,397
Payments during the year (7,056,504) (2,097,088) (6,820,328) (1,991,133)
Translation difference (36,931) 20,071 – –
Balance, end of year 3,492,485 6,982,029 2,959,976 6,736,626
(c) (i) The movement on the deferred tax assets account during the year was as follows:
N’000 N’000 N’000 N’000
Balance, beginning of year 1,739,551 4,346 1,338,268 4,346
Prior year under–provision – 179,319 – –
Opening balance, as restated 1,739,551 183,665 1,338,268 4,346
Reversal during the year (see note (c)(ii) below) (1,338,268) – (1,338,268) –
Credit/(charge) for the year 202,898 1,555,886 – 1,333,922
Translation difference (47,131) – – –
Balance, end of year 557,050 1,739,551 – 1,338,268
(ii) The movement on the deferred tax liabilities account during the year was as follows:
N’000 N’000 N’000 N’000
Balance, beginning of year 37,999 14,399 – –
Opening balances of previously unconsolidated subsidiaries – 9,382 – –
Opening balance, as restated 37,999 23,781 – –
Reversal during the year (see note (c)(i) above) (1,338,268) – (1,338,268) –
Charge/(credit) for the year 1,699,757 16,868 1,693,465 –
Translation difference 20,457 (2,650) – –
Balance, end of year 419,945 37,999 355,197 –
Access Bank Plc 107

(iii) The Bank’s exposure to deferred tax (which relates primarily to timing differences in the recognition of depreciation, capital
allowances on fixed assets, unrelieved losses, unrealised FX gain and general provisions) which has been fully provided for in
the financial statements are attributable to the following:
N’000 N’000 N’000 N’000
Fixed assets 380,071 1,170,153 355,197 1,178,863
General provision 1,569 – – –
Unrealised foreign exchange gain (6,031) 34,170 – 34,170
Unrelieved losses (512,713) (2,905,875) – (2,551,301)
(137,105) (1,701,552) 355,197 (1,338,268)
11 Cash and balances with Central Bank of Nigeria

(a) Cash and balance with Central Bank of Nigeria comprise:
N’000 N’000 N’000 N’000
Cash balances 13,472,896 12,915,335 5,725,995 6,565,558
Operating account with Central Bank of Nigeria 8,356,366 10,681,575 8,356,366 10,681,575
Placement with Central Bank of Nigeria – 38,000,000 – 38,000,000
21,829,262 61,596,910 14,082,361 55,247,133
Mandatory reserve deposits with Central Bank of Nigeria
(see note (b) below) 3,566,031 2,930,273 3,566,031 2,930,273
Investment account (see note (c) below) – 65,518 – 65,518
25,395,293 64,592,701 17,648,392 58,242,924
(b) The mandatory reserve deposit is not available for use in the Group’s day to day operations.
(c) This represents restricted funds held by the Central Bank of Nigeria in respect of investment in SMEEIS not yet undertaken by the Bank.
12 Treasury bills
These comprise: Group Group Bank Bank
N’000 N’000 N’000 N’000
Treasury bills (see note (a) below) 35,857,812 17,207,973 11,618,000 10,926,086
(a) Included in treasury bills held in the Bank is N6.691 billion (December 2009: N7.591 billion) pledged by the Bank to third parties
as collateral.
(b) The cost of treasury bills held by the Bank as at 31 December 2010 was N11,539,497,069 (December 2009: N10,784,004,511).
13 Due from other banks

(a) Due from banks comprise:
Balances with banks in Nigeria N’000 N’000 N’000 N’000
– Clearing settlement account 678,708 765,085 577,275 765,085
– Placements with banks and discount
houses in Nigeria (see note (b) below) 73,499 9,295,906 – 9,476,778
– Current accounts with other banks in Nigeria 81,768 263,124 – –
Balances with banks outside Nigeria:
– Balances held with other central banks 601,697 3,075,564 – –
– Balances held with other banks outside
Nigeria (see note (c) below) 26,389,257 44,639,044 44,782,198 37,118,886
– Placements with foreign banks 75,357,195 35,138,384 26,818,007 28,830,956
103,182,124 93,177,107 72,177,480 76,191,705
(b) Included in placements with banks and discount houses in Nigeria is an amount of N5,441,257,000 (December 2009:
N4,192,687,000) representing unclaimed dividend held in the account of the Registrars to the Bank. The corresponding liability
is included in other liabilities (see note 29).
108 Access Bank Plc

(c) Included in balances held with banks outside Nigeria is the naira equivalent of foreign currencies held on behalf of customers
in various foreign accounts amounting to N25,999,292,000 (December 2009: N6,076,115,000) to cover letters of credit
transactions. The corresponding liability for this amount is included in other liabilities (see note 29).
14 Loans and advances

(a) The classification of loans and advances is as follows:
N’000 N’000 N’000 N’000
Overdraft 131,960,535 107,847,932 123,358,430 98,838,374
Term loan 256,625,961 206,430,581 246,111,795 194,071,561
Others (see note (f) below) 76,703,830 99,174,444 66,313,386 92,456,506
465,290,326 413,452,957 435,783,611 385,366,441
– specific allowance (see note (g) below) (28,989,387) (25,997,666) (26,212,611) (21,354,890)
– interest in suspense (see note (h) below) (6,455,966) (3,631,468) (6,392,043) (3,623,902)
– general (see note (i) below) (62,654) (45,655) – –
(35,508,007) (29,674,789) (32,604,654) (24,978,792)
429,782,319 383,778,168 403,178,957 360,387,649
(b) The loans and advances are analysed as follows: Group Group Bank Bank
N’000 N’000 N’000 N’000
Specialised loans (see note (c) below) 108,802,418 13,646,923 108,802,418 13,646,923
Non-specialised loans 356,487,908 399,806,034 323,140,975 371,719,518
465,290,326 413,452,957 431,943,939 385,366,441
Provisions:
Specialised:
– Specific allowance (12,955,868) (7,868,645) (12,955,868) (7,868,645)
– Interest in suspense (2,295,759) – (2,295,759) –
– General allowance – – – –
(15,251,627) (7,868,645) (15,251,627) (7,868,645)
Non-specialised:
– Specific allowance (16,033,519) (18,129,021) (13,256,743) (13,486,245)
– Interest in suspense (4,160,207) (3,631,468) (4,096,284) (3,623,902)
– General allowance (62,654) (45,655) – –
(20,256,380) (21,806,144) (17,353,027) (17,110,147)
(35,508,007) (29,674,789) (32,604,654) (24,978,792)
429,782,319 383,778,168 399,338,739 360,387,649
(c) Specialised loans comprise: Group Group Bank Bank

N’000 N’000 N’000 N’000
Project finance 53,360,501 – 53,360,501 –
Object finance 6,886,247 – 6,886,247 –
SME loans – – – –
Agriculture finance 3,547,702 – 3,547,702 –
Real Estate finance 36,439,750 – 36,439,750 –
Mortgage finance 402,948 – 402,948 –
100,637,148 – 100,637,148 –
Margin loans 8,165,270 13,646,923 8,165,270 13,646,923
108,802,418 13,646,923 108,802,418 13,646,923
Access Bank Plc 109

(d) Classification of gross specialised loans and advances are as follows:

2010 Project Object SME Agriculture Real Estate Mortgage
finance finance loans finance finance finance Total
N’000 N’000 N’000 N’000 N’000 N’000 N’000
Performing 11,633,530 6,068,230 – 3,541,197 32,837,880 300,393 54,381,230
Watchlist 41,726,971 818,017 – – 1,264,673 – 43,809,661
Other classification
Substandard – – – – 1,339,843 – 1,339,843
Doubtful – – – 5,653 97,337 102,555 205,545
Very doubtful – – – – – – –
Lost – – 852 900,017 – 900,869
– – 6,505 2,337,197 102,555 2,446,257
53,360,501 6,886,247 – 3,547,702 36,439,750 402,948 100,637,148
Percentage to total loans 0.00% 0.00% 0.00% 0.18% 6.41% 25.45% 2.44%
(e) Allowances for specialised loans are as follows:

Group Group Group Group Bank Bank Bank Bank
Balance Allowance Balance Allowance Balance Allowance Balance Allowance
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
Project finance 53,360,501 7,238,809 – – 53,360,501 7,238,809 – –
Object finance 6,886,247 182,769 – – 6,886,247 182,769 – –
SME loans – – – – – – – –
Agriculture finance 3,547,702 3,988 – – 3,547,702 3,988 – –
Real Estate finance 36,439,750 1,237,359 – – 36,439,750 1,237,359 – –
Mortgage finance 402,948 70,034 – – 402,948 70,034 – –
100,637,148 8,732,959 – – 100,637,148 8,732,959 – –
Margin loans 8,165,270 6,518,668 13,646,923 7,868,645 8,165,270 6,518,668 13,646,923 7,868,645
108,802,418 15,251,627 13,646,923 7,868,645 108,802,418 15,251,627 13,646,923 7,868,645
(f) Included in other loans is a balance of N3,840,218,000 which represents underwriting commitments held by the Bank now
reclassified as part of loans and advances in line with CBN circular on universal banking.
(g) The movement on specific allowance for bad and doubtful loans during the year was as follows:
N’000 N’000 N’000 N’000
Prior year under-provision – 4,076,800 – –
Adjusted opening balance 25,908,623 9,288,047 21,354,890 4,393,483
Reclassification from underwriting
commitment (see note 17 (a) (iv)) 3,256,198 – 3,256,198 –
Allowance during the year (see note 9 above) 12,639,028 28,763,024 9,696,254 27,784,816
Allowance/(write back) for margin facilities
(see note 9 above) (1,350,004) 7,868,645 (1,350,004) 7,868,645
Allowance no longer required (see note 9 above) (6,785,619) (12,935,811) (5,428,737) (12,418,211)
Allowance written off during the year (4,383,007) (7,149,686) (1,315,990) (6,273,843)
(h) The movement in the interest-in-suspense account during the year was as follows:
Suspended during the year 4,070,590 5,807,549 4,009,616 5,799,983
Recovered during the year (207,784) (1,759,397) (203,167) (1,759,397)
Written off during the year (1,038,308) (2,705,796) (1,038,308) (2,705,796)
110 Access Bank Plc

(i) (i) The movement on the general allowance for bad and doubtful loans during the year was as follows:
N’000 N’000 N’000 N’000
Balance, beginning of year 45,655 7,000,055 – 6,974,397
Adjustment to opening balance – – – –
Adjusted opening balance 45,655 7,000,055 – 6,974,397
Allowance during the year (see note 9) 32,585 18,225 – –
Allowance written back (see note 9) (11,621) (6,974,397) – (6,974,397)
Balance, end of year 62,654 45,655 – –
(ii) In the current year, the Bank did not make a 1% general provision on performing loans and advances based on the CBN
circular BSD/DIR/GEN/CIR/04/013 to all banks in respect of 1% general provisioning on performing risk assets dated 7
January 2011 and a publication by the Nigerian Accounting Standards Board (NASB) dated 21 March 2011 (2009: Nil).
The CBN circular waived the requirement of the 1% general provision for all Deposit Money Banks (DMBs) while the NASB
publication stated that the level of provisioning over the period from 2008 to 2010 was considered adequate for individual
Deposit Money Banks (DMBs) that have subjected their loan portfolios to extensive review by the CBN and the Nigeria
Deposit Insurance Corporation (NDIC) since the beginning of the current CBN reforms. The NASB publication excludes
those individual DMBs from making the general loan loss provision required by paragraph 55 of Statement of Accounting
Standard SAS 10: Accounting By Banks and Non-Bank Financial Institutions (Part I) in the financial statements for the year
ended 31 December 2010 only.
The directors are of the opinion that the Bank qualifies for the exclusion as provided by the NASB publication and have also
complied with the CBN circular BSD/DIR/GEN/CIR/04/013 dated 7 January 2011. Accordingly, the Bank has not made the
1% general provision on performing loans and advances for the year ended 31 December 2010.
(j) (i) The analysis of loan and advances by security is as follows:

N’000 N’000 N’000 N’000
Secured against real estate 105,049,675 74,320,354 96,474,275 73,168,477
Secured by shares of quoted companies (see (iii) below) 12,005,488 15,306,524 12,005,488 15,306,524
Otherwise secured 336,927,338 313,507,282 327,303,848 296,891,440
Unsecured 11,307,825 10,318,797 – –
465,290,326 413,452,957 435,783,611 385,366,441
(ii) Included in loans and advances otherwise secured is a total loan amount of N14,806,697,000 (December 2009:
N28,958,590,000) secured by cash held in various deposit accounts on behalf of customers.
(iii) Included in loans and advances secured by shares of quoted companies is an amount of N8,165,270,000 (December 2009:
N13,646,922,000) representing margin facilities which were marked to market and allowance made on the shortfall.
(iv) Included in loans and advances secured by shares of quoted companies is the amount of N3,840,218,000 representing
15,360,873 units of African Petroleum Plc shares which was previously underwritten by the Bank. The amount was included
in investment securities in prior year but was transferred to loans and advances in current year in line with Central Bank of
Nigeria circular BSD/DO/CIR/VOL.1/10/2000.
(k) The maturity profile of loans and advances is as follows:
N’000 N’000 N’000 N’000
Under one month 112,764,852 108,208,967 110,287,957 96,227,109
1–3 months 84,720,425 78,987,249 76,322,737 70,490,229
3–6 months 50,337,019 32,868,456 46,522,176 31,717,362
6–12 months 36,127,911 61,195,886 32,334,795 58,894,375
Over 12 months 181,340,119 132,192,399 170,315,946 128,037,366
465,290,326 413,452,957 435,783,611 385,366,441
Access Bank Plc 111

(l) The gross value of loans and advances by borrower is as follows:

N’000 N’000 N’000 N’000
Insider related loans (see note (i) below) 65,955,735 49,690,091 58,866,046 49,200,335
Other loans 399,334,591 363,762,866 376,917,565 336,166,106
465,290,326 413,452,957 435,783,611 385,366,441
(i) The non performing insider related loans as at the balance sheet date was N47,204,787 (December 2009: N35,420,589).
(m) The gross value of loans and advances by sector is as follows:
N’000 N’000 N’000 N’000
Agriculture 3,780,784 2,012,992 3,547,702 1,152,138
Arts, entertainment and recreation 270,000 216,030 270,000 216,030
Capital market 19,287,516 31,782,131 19,287,516 31,782,131
Construction 20,050,437 15,011,559 19,019,811 13,725,257
Education 239,875 326,861 239,561 326,861
Finance and insurance 17,598,898 11,566,313 11,201,204 10,575,225
General 13,395,708 12,445,315 12,995,228 11,378,908
General commerce 56,288,917 68,184,535 54,619,803 62,341,977
Government 19,092,466 13,146,249 17,971,498 11,078,609
Information and communication 69,450,897 66,840,594 68,304,866 61,113,195
Manufacturing 85,394,186 75,048,300 84,553,478 68,617,604
Oil and gas 106,298,109 77,980,922 106,009,170 77,465,056
Power and energy 538,571 696,611 391,361 636,920
Professional, technical and scientific activities 443,184 405,871 443,184 405,871
Real estate activities 33,026,044 31,251,918 30,320,052 28,574,021
Transportation and storage 7,065,810 6,536,756 6,603,440 5,976,638
Others 13,068,924 – 5,739.03 –
465,290,326 413,452,957 435,783,611 385,366,441
(n) The analysis of loans and advances by performance is as follows:

N’000 N’000 N’000 N’000
Non-performing
Substandard 11,608,245 55,905,297 8,217,681 41,817,821
Doubtful 8,113,821 14,458,001 6,002,447 13,785,969
Lost 17,951,073 10,308,140 17,008,026 6,160,373
37,673,139 80,671,438 31,228,154 61,764,163
Performing 427,617,187 332,781,519 404,555,457 323,602,278
465,290,326 413,452,957 435,783,611 385,366,441
15 On-lending facilities
(a) This represents disbursement to customers in respect of on-lending facilities received from European Investment Bank, African
Development Bank, Nigeria Export Import Bank and Bank of Industry (see note 27).
N’000 N’000 N’000 N’000
22,685,778 3,131,963 22,685,778 3,131,963
112 Access Bank Plc

(b) The maturity profile of on-lending facilities is as follows:

N’000 N’000 N’000 N’000
1–3 months 970,938 4,496 970,938 4,496
3–6 months 87,672 49,541 87,672 49,541
6–12 months 150,177 359,712 150,177 359,712
Over 12 months 21,476,991 2,718,214 21,476,991 2,718,214
22,685,778 3,131,963 22,685,778 3,131,963
(c) The analysis of on-lending facilities by performance is as follows:
N’000 N’000 N’000 N’000
Performing 22,685,778 3,131,963 22,685,778 3,131,963
16 Advances under finance lease

(a) Advances under finance lease comprise:
N’000 N’000 N’000 N’000
Gross investment in finance lease 3,480,431 4,942,020 3,137,130 4,466,067
Unearned income (396,038) (692,047) (396,038) (692,047)
Net investment in finance lease 3,084,393 4,249,973 2,741,092 3,774,020
Specific allowance – – – –
General allowance – – – –
3,084,393 4,249,973 2,741,092 3,774,020
(b) The maturity profile of the net investment in advances under finance lease is as follows:
N’000 N’000 N’000 N’000
Under 1 month 14,744 11,301 3,444 10,733
1–3 months 38,282 57,218 8,045 54,684
3–6 months 21,568 65,271 20,103 54,770
6–12 months 112,587 464,858 95,325 336,570
Over 12 months 2,897,212 3,651,325 2,614,175 3,317,263
3,084,393 4,249,973 2,741,092 3,774,020
(c) The analysis of advances under finance leases by performance is as follows:

N’000 N’000 N’000 N’000
Performing 3,084,393 4,249,973 2,741,092 3,774,020
17 Investment securities
(a) Investment securities – short term
N’000 N’000 N’000 N’000
Trading securities (note (a (i)) below) 1,773,988 26,781,578 1,056,706 26,772,718
Stabilisation securities 29,069 31,151 – –
Underwriting commitment (see note (a (iv)) below) – 584,020 – 584,020
1,803,057 27,396,749 1,056,706 27,356,738
Access Bank Plc 113

(b) (i) Investment securities – long term

N’000 N’000 N’000 N’000
N50 billion Second Lagos State Government
Fixed rate Bond 2008/2013 – – – –
Federal Government Bonds (see note (b) (i) below) 103,377,781 35,998,818 103,377,781 35,998,818
Other bonds 5,030,870 382,026 3,000,000 –
Other quoted investments – 1,713,013 – –
108,408,651 38,093,857 106,377,781 35,998,818
Other equity investments

Africa Finance Corporation (see note b) (iv) below) 8,425,000 8,425,000 8,425,000 8,425,000
Valucard Nigeria Plc (see note (b) (v) below) 368,257 368,257 368,257 368,257
Central Securities Clearing System Limited
(see note (b) (vi) below) 175,000 175,000 175,000 175,000
IBTC Pension Managers (see note (b) (vii) below) 141,177 141,177 141,177 141,177
Credit Reference Company (see note (b) (viii) below) 61,111 61,111 61,111 61,111
Nigerian Inter-Bank Settlement System
(see note (b) (ix) below) 46,588 46,588 46,588 46,588
Consolidated Discount House (see note (b) (x) below) 10,000 10,000 10,000 10,000
Small & Medium Scale Investments
(see note (b) (xi) below) 150,000 150,000 150,000 150,000
Other investments (see note (b) (xiv) below) 77,119 189,642 – –
9,454,252 9,566,775 9,377,133 9,377,133
Net value of investment 119,665,960 75,057,381 116,811,620 72,732,689
(ii) The movement in investment securities – long term during the year is as follows:
N’000 N’000 N’000 N’000
Addition during the year 98,629,130 – 96,980,286 –
Disposal during the year (28,426,859) (17,111,553) (26,601,323) (19,021,979)
(a) (i) Trading securities comprise:

N’000 N’000 N’000 N’000
Trading FGN Bonds (see note (a (ii)) below) 1,056,706 26,772,718 1,056,706 26,772,718
Banker’s Acceptances 717,282 8,860 – –
1,773,988 26,781,578 1,056,706 26,772,718
(ii) Trading FGN bonds comprise:

N’000 N’000 N’000 N’000
10.75% 4th FGN Bond Series 1 (2010) – 94,866 – 94,866
8.99% 4th FGN Bond Series 14 (2010) – 622 – 622
12.99% 3rd FGN Bond Series 13 (2011) 106,244 3,401,643 106,244 3,401,643
9.45% 5th FGN Bond Series 1 (2013) 38,595 350,845 38,595 350,845
114 Access Bank Plc

10.50% 5th FGN Bond Series 4 (2013) 3,671 3,643,744 3,671 3,643,744
8.50% 6th FGN Bond Series 5 (2029) – 9,463,230 – 9,463,230
1,056,706 26,772,718 1,056,706 26,772,718
– – – –
(iii) The original cost of trading bonds as at 31 December 2010 was N1,069,469,000 (December 2009: N27,308,506,854).
(iv) Underwriting commitment represents the carrying value of 15,360,873 units of African Petroleum Plc shares underwritten
by the Bank. The principal sum and the allowance thereon have been reclassified to loans and advances. The analysis is
presented below:
N’000 N’000 N’000 N’000
Cost 3,840,218 3,840,218 3,840,218 3,840,218
Revaluation loss (3,256,198) (3,256,198) (3,256,198) (3,256,198)
Reclassified to loans and advances (3,840,218) – (3,840,218) –
Reclassified to allowance for loans and advances
(see note 14 (g)) 3,256,198 – 3,256,198 –
– 584,020 – 584,020
(b) (i) Long term investment in Federal Government Bonds comprises:

N’000 N’000 N’000 N’000
7.95% 4th FGN Bond Series 7 (2010) 9,076,616 2,201,609 9,076,616 2,201,609
12.99% 3rd FGN Bond Series 13 (2011) 4,370,913 1,170,273 4,370,913 1,170,273
10.50% 5th FGN Bond Series 3 (2011) 521,481 – 521,481 _
Federal Mortgage Bank of Nigeria Bond (2012) 2,076,928 2,132,358 2,076,928 2,132,358
9.23% 4th FGN Bond Series 5 (2012) 373,994 – 373,994 –
10.50% 6th FGN Bond Series 2 (2012) 1,623,851 – 1,623,851 –
9.20% 4th FGN SERIES 6 (2014) 959,224 – 959,224 –
7.00% 6th FGN SERIES 4 (2019) 1,365,949 – 1,365,949 –
AMCON Consideration Bond (see 17 (b) (xv) below) 2,690,920 – 2,690,920 –
103,377,781 35,998,818 103,377,781 35,998,818
(ii) The market value of long term FGN Bonds is N91,284,208,000 (December 2009: N34,386,444,000).
Access Bank Plc 115

(iii) Included in long term FGN bonds is an amount of N34,120,000,000 (December 2009: Nil) pledged as collateral by the
Bank for various transactions.
(iv) This represents the Bank’s investment in 61,250,000 (December 2009: 61,250,000) ordinary shares of US$1 each in
Africa Finance Corporation, representing 5.6% equity interest (December 2009: 5.6%).
(v) This represents the Bank’s investment in 368,256,737 (December 2009: 368,256,737) units of Valucard Nigeria Plc
representing 10% equity interest.
(vi) This represents the Bank’s investment in 50,000,000 (December 2009: 50,000,000) ordinary shares of N1 each in
Central Securities Clearing System, representing 5% equity interest.
(vii) This represents the Bank’s investment in 75,000,000 (December 2009: 75,000,000) ordinary shares of N1 each in
IBTC Pension Managers, representing 15% equity interest.
(viii) This represents the Bank’s investment in 107,407,407 (December 2009: 107,407,407) units of Credit Reference Company
representing 7.5% equity interest.
(ix) This represents the Bank’s investment in 52,583,291 (December 2009: 52,583,291) ordinary shares of N1 each in Nigerian
Inter-Bank Settlement System Plc, representing 7% equity interest.
(x) This represents the Bank’s investment in 10,000,000 (December 2009: 10,000,000) ordinary shares of N1 each in
Consolidated Discount Limited, representing 5% equity interest.
(xi) Investment in SMEEIS
The details of the investments are as shown below:
N’000 N’000 N’000 N’000
First SMI Consortium Company 13,750 13,750 13,750 13,750
Midland Sugar Limited 21,991 21,991 21,991 21,991
Channel House Limited 15,000 15,000 15,000 15,000
Masdeladel Industries 30,600 30,600 30,600 30,600
Radmed Diagnostics 37,100 37,100 37,100 37,100
Vic Lawrence Associates – 26,175 – 26,175
Tinapa Business Resort 150,000 150,000 150,000 150,000
See note (b) (xi) below 268,441 294,616 268,441 294,616
Impairment of SME investment (see note (b) (xii)) (118,441) (144,616) (118,441) (144,616)
150,000 150,000 150,000 150,000
The Bank makes investments under the Small and Medium Enterprises Equity Investment Scheme (SMEEIS) per the Policy
Guidelines for 2001 Fiscal Year.
(xii) The movement in investment in SMEEIS during the year is as follows:
N’000 N’000 N’000 N’000
Balance, beginning of year 294,616 294,616 294,616 294,616
Disposal during the year (26,175) – (26,175) –
Balance, end of year 268,441 294,616 268,441 294,616
(xiii) The movement in impairment of SMEEIS during the year is as follows:

N’000 N’000 N’000 N’000
Balance, beginning of year 144,616 – 144,616 –
Addition during the year – 144,616 – 144,616
Provision no longer required (26,175) – (26,175) –
(xiv) This represents other Group entities’ investment in unquoted equities.
116 Access Bank Plc

(xv) The analysis of AMCON Consideration Bonds is provided below:

N’000 N’000 N’000 N’000
Gross value of investment 3,618,988 – 3,618,988 –
Addition during the year – – – –
Unearned income (928,068) – (928,068) –
Balance, end of year 2,690,920 – 2,690,920 –
AMCON Bond represents Initial Consideration Bonds Issued by the Asset Management Corporation of Nigeria (AMCON)
and fully guaranteed by the Federal Government of Nigeria. The Initial Consideration Bonds are three year zero coupon
with a yield to maturity of 10.125%. The Initial Consideration Bonds were issued to banks in exchange for non-performing
capital market loans as part of the Nigerian Government’s policy measures to reduce the negative impact of capital market
loans on the Nigerian banking industry and the economy as a whole.
18 Investment in subsidiaries
Investment in subsidiaries comprise:
(a) Equity investment in subsidiaries
N’000 N’000 N’000 N’000
Access Bank, UK (see note (c) below) – – 7,458,100 7,458,100
Access Bank, Ghana (see note (c) below) – – 7,427,000 7,427,000
Access Bank, Cote D’ivoire (see note (c) below) – – 1,890,000 1,890,000
Access Bank Rwanda (see note (c) below) – – 1,578,825 1,578,825
Access Homes & Mortgages (see note (c) below) – – 1,000,000 1,000,000
Access Bank, (R D Congo) (see note (c) below) – – 1,818,450 969,490
Access Bank, Zambia (see note (c) below) – – 617,925 617,925
FinBank, Burundi (see note (c) below) – – 526,274 526,274
Access Investment and Securities (see note (c) below) – – 500,000 500,000
Access Bank, Sierra Leone (see note (c) below) – – 709,351 489,600
Access Bank, Gambia (see note (c) below) – – 892,556 206,531
United Securities Limited (see note (c) below) – – 107,199 107,199
– – 24,525,680 22,770,944
Debt investment in subsidiaries
Access Bank Zambia (see (b) (ii) below) – – – 528,402
– – 24,525,680 23,299,346
Less: Provision for diminution (see note (b) h(iii) below) – – (264,557) –
Total investment in subsidiaries – – 24,261,123 23,299,346
(b) (i) The movement in investment in subsidiaries during the year is as follows:
N’000 N’000 N’000 N’000
Balance, beginning of year – – 23,299,346 20,390,610
Addition during the year – – 1,083,097 2,908,736
Transfer from deposit from investments (see note 21 (e)) – – 671,639 –
Transfer to deposit for investment (see note 21 (e)) – – (528,402) –
Balance, end of year – – 24,525,680 23,299,346
(ii) The debt investment in subsidiaries was converted to equity investment in the subsidiary during the year. The balance in
respect of this conversion is included in deposit for investment in note 21.
(iii) This represents the provision for diminution on the Bank’s investment in Access Investment and Securities Limited, a fully
owned subsidiary which the Bank plans to dispose of in 2011. The valuation was carried out by management and no
significant additional exposure is expected to result.
(iv) All valuations of other unquoted investments were carried out by management and the carrying values are not below costs
except in respect of impairments on investments already recognised.
Access Bank Plc 117

(c) Condensed results of consolidated entities

(i) The condensed financial data of the consolidated entities as at 31 December 2010, are as follows:
Condensed profit and loss
Access
Access Bank Access
Group Elimination Access Bank Sierra Bank
balances entries Bank Plc Gambia Leone Zambia
N’000 N’000 N’000 N’000 N’000 N’000
Operating income 69,521,342 (148,485) 59,526,316 436,794 316,801 1,481,288
Operating expenses (48,644,314) 53,255 (38,797,403) (504,928) (327,119) (1,283,243)
Provision expense (4,708,158) (41,882) (3,060,329) (42,740) (59,796) (193,746)
Profit before tax 16,168,870 (137,112) 17,668,584 (110,874) (70,114) 4,299
Taxation (5,100,749) – (4,737,143) (12,602) 11,390 –
Profit for the year 11,068,121 (137,112) 12,931,441 (123,476) (58,724) 4,299
Condensed financial position 31 December 2010

Assets
Central Bank of Nigeria 25,395,293 – 17,648,392 372,839 179,382 4,055,851
Treasury bills 35,857,812 – 11,618,000 255,622 947,277 2,648,002
Due from other banks 103,182,124 (41,504,360) 72,177,480 687,101 892,982 (649,873)
Loans and advances
to customers 429,782,319 (1,372,657) 403,178,957 2,644,420 504,335 3,835,395
On-lending facilities 22,685,778 – 22,685,778 – – –
Advances under
finance lease 3,084,393 – 2,741,092 – – 114,997
Investment securities 119,665,960 – 116,811,620 – – 617,398
Investment in subsidiaries – (24,261,123) 24,261,123 – – –
Investment property 12,943,078 12,943,078
Other assets 23,287,133 (4,938,160) 22,172,504 670,188 94,716 702,533
Deferred tax asset 557,050 – – – – 347,310
Property and equipment 25,390,076 – 19,161,511 788,321 282,789 931,587
Equipment on lease 1,561,045 – 1,561,045 – – –
Goodwill 1,431,711 1,431,711 – – – –
804,823,772 (70,644,589) 726,960,580 5,418,491 2,901,481 12,603,200
Financed by
Customer deposits 486,925,846 (17,660,813) 440,542,115 4,299,081 2,080,042 11,038,325
Due to other banks 64,039,353 (25,824,405) 34,742,938 45,614 304,092 190,210
Debt securities in issue – – – – – –
Current income tax 3,492,485 – 2,959,976 8,655 (2,809) –
Other liabilities 51,889,908 (787,344) 43,169,762 298,044 145,282 379,470
Deferred taxation 419,945 – 355,197 – 9,862 –
Equity and reserves 175,370,457 (26,372,029) 182,504,814 767,097 365,019 995,194
804,823,772 (70,644,592) 726,960,580 5,418,491 2,901,488 12,603,199
Cash and cash equivalents 160,869,198 (41,504,360) 97,877,841 1,315,562 2,019,641 6,053,980
118 Access Bank Plc

31 December 2010
Access Access
Access Access United Access Investment Homes Access
The Access Bank FinBank Bank Cote Securities Bank and and Bank
Bank UK Rwanda Burundi D’ivoire Limited (RD Congo) Securities Mortgages Ghana
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
1,448,555 1,357,187 533,220 1,164,461 318,975 590,114 (71,401) 164,749 2,402,768
(1,646,032) (1,220,556) (519,941) (1,767,467) (159,753) (1,050,005) (277,419) (111,532) (1,032,171)
– 133,746 (109,941) (1,183,784) (4,819) (67,846) – (7,757) (69,264)
(197,477) 270,377 (96,662) (1,786,790) 154,403 (527,737) (348,820) 45,460 1,301,333
207,269 (82,407) – – (56,733) – – (28,643) (401,880)
9,792 187,970 (96,662) (1,786,790) 97,670 (527,737) (348,820) 16,817 899,453
– 2,281,496 244,636 246,702 – 214,344 – 45 151,606

3,536,564 544,360 178,707 – – 765,327 – – 15,363,953
52,628,509 4,661,185 1,986,252 2,756,468 5,681,467 1,444,717 392,251 330,046 1,697,899
7,808,045 4,418,830 1,555,186 3,931,459 – 780,585 – 1,014,352 1,483,412

– – – – – – – – –
– 60,481 – – – – – – 167,823
2,030,870 77,119 – 128,953 – – – – –
– – – – – – – – –
– – – – – – – – –
1,619,176 111,518 296,198 239,052 382,110 687,060 181,343 15,503 1,053,392
209,740 – – – – – – – –
242,534 149,134 192,358 2,063,961 29,944 736,336 31,304 74,038 706,259
– – – – – – – – –
– – – – – – – – –
68,075,438 12,304,123 4,453,337 9,366,595 6,093,521 4,628,369 604,898 1,433,984 20,624,344
10,143,734 10,051,696 3,617,777 9,811,324 – 3,192,092 – 226,365 9,584,108

51,735,993 45,060 – 1,520,450 – – – 162,500 1,116,901
– – – – – – – – –
– – – – – – – – –
– 99,969 – – 63,743 – – 24,271 338,680
985,472 617,354 234,578 748,484 5,555,423 51,188 75,785 15,895 400,515
– – – – 6,654 – – – 48,232
5,210,239 1,490,044 600,982 (2,713,663) 467,701 1,385,088 529,113 1,004,953 9,135,905
68,075,438 12,304,123 4,453,337 9,366,595 6,093,521 4,628,368 604,898 1,433,984 20,624,341
56,165,073 7,487,041 2,409,595 3,003,170 5,681,467 2,424,388 392,251 330,091 17,213,458
Access Bank Plc 119

(ii) The condensed financial data of the consolidated entities as at 31 December 2009, are as follows:
Condensed profit and loss

Access
Access Bank Access
Group Elimination Access Gambia Sierra Bank
balances entries Bank Plc Bank Leone Zambia
N’000 N’000 N’000 N’000 N’000 N’000
Operating income 54,739,410 (62,144) 47,124,761 536,878 287,893 385,801
Operating expenses (36,689,494) (775,431) (26,253,003) (546,222) (390,130) (857,697)
Provision expense (21,531,481) – (20,830,035) (51,192) (26,858) –
Profit before tax (3,481,565) (837,575) 41,723 (60,536) (129,094) (471,896)
Taxation (920,601) – (922,475) (16,593) (10,554) 174,509
Profit for the year (4,402,166) (837,575) (880,752) (77,129) (139,648) (297,387)
Condensed financial position 31 December 2009

Assets
Cash and balance with CBN 64,592,701 – 58,242,924 296,471 89,612 1,603,096
Treasury bills 17,207,973 – 10,926,086 254,921 296,735 1,015,482
Due from other banks 93,177,107 (23,418,998) 76,191,705 748,895 583,910 669,931
Loans and advances to customers 383,778,168 (254,220) 360,387,649 2,303,442 1,032,700 1,439,531
Advances under finance lease 4,249,973 – 3,774,020 – – –
Investment securities 75,057,381 (1,128,715) 72,732,689 8,860 – 296,742
Investment in subsidiaries – (23,299,346) 23,299,346 – – –
Investment property 1,404,000 1,404,000
Investment in associates 300,155 155,155 145,000 – – –
Other assets 17,292,653 (1,555,623) 13,677,803 520,120 107,826 251,204
Deferred tax asset 1,739,551 1,338,268 – – – 353,828
Property and equipment 27,944,990 – 20,154,091 918,665 481,421 802,264
Equipment on lease 2,169,175 – 2,169,175 – – –
Goodwill 1,738,148 1,738,148 – – – –
693,783,938 (47,763,599) 647,574,719 5,051,374 2,592,204 6,432,080
Financed by
Customer deposits 438,558,997 (24,547,713) 405,836,092 3,943,895 1,677,429 5,479,900
Due to other banks 43,216,841 (467,552) 39,025,683 494,588 80,597 467,552
Debt securities in issue 2,604,277 – 2,604,277 – – –
Current income tax 6,982,029 – 6,736,626 11,085 – –
Other liabilities 30,905,783 (807,293) 17,089,054 348,047 566,485 309,145
Deferred taxation 37,999 – – – 21,962 –
Equity and reserves 168,346,048 (22,061,527) 173,151,023 253,756 245,740 289,792
693,783,938 (47,884,084) 647,574,719 5,051,370 2,592,213 6,546,389
Cash and cash equivalents 171,981,990 (23,418,998) 142,364,924 1,300,288 970,258 3,288,510
120 Access Bank Plc

•• 31 December 2009
Access Access Access

Access Bank United Investment Homes Access
The Access Bank FinBank Cote Limited Access Bank and and Bank
Bank UK Rwanda Burundi D’ivoire Securities (RD Congo) Securities Mortgages Ghana
N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000 N’000
538,324 1,579,833 569,883 1,364,324 511,916 795,119 193,380 152,085 761,356
(1,470,677) (1,639,250) (651,030) (2,214,222) (246,172) (723,103) (192,648) (151,532) (578,376)
– (142,795) 32,536 (324,698) 18,558 (150,351) – – (56,646)
(932,353) (202,212) (48,611) (1,174,596) 284,302 (78,335) 732 553 126,334
– (38,354) (27,888) – (86,090) (1,359) 41,694 1,448 (34,939)
(932,353) (240,566) (76,499) (1,174,596) 198,212 (79,694) 42,426 2,001 91,394
963,051 2,481,642 274,431 445,391 – 105,574 – 62 90,446

– – 66,880 – – 6,624 – – 4,641,243
21,825,330 4,351,666 1,892,781 1,435,157 5,542,056 543,302 30,051 2,956 2,778,365
1,060,415 6,780,508 2,220,379 6,733,692 – 949,314 – 248,948 875,811
– – – – – – – – –
– – – – – – – – 475,953
1,713,013 79,107 50,214 176,756 – – 169,885 958,830 –
– – – – – – – – –
– – – – – – – – –
2,048,676 110,483 280,128 403,249 447,350 448,061 158,417 14,411 380,548
– – – – – – 41,694 5,761 –
304,657 206,494 231,143 3,089,217 40,454 978,269 40,026 89,290 609,000
– – – – – – – – –
– – – – – – – – –
27,915,142 14,009,899 5,015,956 12,283,462 6,029,860 3,031,144 440,073 1,320,258 9,851,367
17,705,772 12,280,649 4,063,139 9,923,445 – 1,273,496 – 13,193 909,699

2,946,662 63,105 – – – 76,180 – – 530,026
– – – – – – – – –
– – – – – – – – –
– 19,015 27,888 – 135,091 – – 4,313 48,012
1,929,869 309,208 251,763 4,896,516 5,522,157 33,960 37,859 300,751 118,262
– – – – 6,656 – – – 9,382
5,332,838 1,337,921 673,166 (2,535,428) 371,054 1,647,509 402,214 1,002,001 8,235,987
27,915,142 14,009,899 5,015,956 12,284,534 6,034,958 3,031,144 440,073 1,320,258 9,851,367
22,788,381 6,833,308 2,234,092 1,880,548 5,542,056 655,500 30,051 3,018 7,510,055
Access Bank Plc 121

(d) Principal subsidiary undertakings:

Details of consolidated subsidiaries as at 31 December 2010 are shown below:

Percentage of
Country of Nature of equity capital held % Year end
incorporation Company name Business Dec-10 Dec-09 consolidated
United Kingdom The Access Bank, UK Banking 100 100 31-Dec-10
Ghana Access Bank, Ghana Banking 95 95 31-Dec-10
Cote d’Ivoire Access Bank, Cote D’ ivoire Banking 88 88 31-Dec-10
Rwanda Access Bank Rwanda Banking 75 75 31-Dec-10
Nigeria Access Homes and Mortgages Mortgage services 100 100 31-Dec-10
Congo Access Bank (RDCongo) Banking 100 100 31-Dec-10
Zambia Access Bank, Zambia Banking 100 100 31-Dec-10
Burundi FinBank, Burundi Banking 75 75 31-Dec-10
Nigeria Access Investment Investment management
and Securities and securities dealing 100 100 31-Dec-10
Sierra Leone Access Bank, Sierra Leone Banking 98 97 31-Dec-10
Gambia Access Bank, Gambia Banking 77 77 31-Dec-10
Nigeria United Securities Limited Registrar services 100 100 31-Dec-10
122 Access Bank Plc

19 Investment properties
(a)
N’000 N’000 N’000 N’000
Balance, beginning of year 1,404,000 – 1,404,000 –
Addition during the year (see note (b) below) 12,107,832 1,404,000 12,107,832 1,404,000
Transfer from fixed assets (see note 22) 71,830 – 71,830 –
13,258,776 1,404,000 13,258,776 1,404,000
Impairment loss during the year (see note 9 (b)) (315,698) (315,698) –
(b) These investment properties were valued by Azuka Iheabunike and Partners, estate surveyors and valuers, in June 2010 using
the Comparative method of valuation to arrive at the open market value. As at 31 December 2010, the Directors are of the
opinion that there were no material fluctuations in the value of the Bank’s investment properties since its last valuation in
June 2010.
20 Investment in associate
N’000 N’000 N’000 N’000
Reversal of share of prior year losses in associate
(see note 33 (d) ) 332,027 – – –
Share of result for the year – (775,431) – –
Dividend paid – (62,143) – –
(Reversal)/share of fixed asset revaluation reserve (487,182) 487,182 – –
Balance, end of year – 300,155 – 145,000
This represents the Bank’s investment in 116,000,000 ( December 2009: 116,000,000) ordinary shares of N1 each in Marina Securities
Limited incorporated in Nigeria, representing 29% (December 2009: 29%) equity interest in the company. This investment was
disposed of during the year.
21 Other assets
(a) Other assets comprise receivables and prepayments arising from:
N’000 N’000 N’000 N’000
FGN Bonds on repurchase agreement (see note 29 (a)) 5,700,000 – 5,700,000 –
Prepayments (see note (b) below) 4,203,989 5,949,436 2,562,634 4,791,848
Interest receivable 2,000,676 2,120,979 1,550,316 1,725,019
Prepaid interest and discounts 1,031,268 2,547,120 705,375 2,547,120
Deposit for investment (see note (e) below) 520,042 500,001 4,665,815 1,678,017
Derivative assets (see note (c) below) 1,110,803 3,002,720 416,230 1,212,811
Other receivables 9,554,250 5,687,717 7,300,106 3,997,137
24,121,028 19,807,973 22,900,476 15,951,952
Allowance on other assets (see note (d) below) (833,895) (2,515,320) (727,972) (2,274,149)
23,287,133 17,292,653 22,172,504 13,677,803
(b) The maturity profile of prepayments is as follows

N’000 N’000 N’000 N’000
Under one year 1,939,888 4,328,191 816,199 3,707,606
Over one year 2,264,101 1,621,245 1,746,435 1,084,242
4,203,989 5,949,436 2,562,634 4,791,848
Access Bank Plc 123

(c) The fair value of derivative instrument held for risk management is as follows:
N’000 N’000 N’000 N’000
Forward exchange contract assets (see note (a) above) 1,110,802 3,002,720 416,230 1,212,811
Forward exchange contract liabilities (see note 29 below) (725,007) (1,833,327) – –
385,795 1,169,393 416,230 1,212,811
The Group uses derivatives not designated in a qualifying hedge relationship, to manage its exposure to foreign currency and
interest rate risks. The instruments used include forward contracts and cross currency linked forward contracts.
(d) The movement on the allowance on other assets during the year is as follows:
N’000 N’000 N’000 N’000
Allowance during the year (see note 9(b)) 649,436 1,921,261 558,242 1,680,090
Allowance no longer required (see note 9(b)) (1,061,608) (441,259) (969,506) (422,701)
Allowance written off (1,269,253) – (1,134,913) –
Balance, end of year 833,895 2,515,320 727,972 2,274,149
(e) The movement on the deposit for investment during the year is as follows:
Dec-09 Dec-09
N’000 N’000 N’000 N’000
Balance, beginning of year 500,001 – 1,678,017 –
Addition during the year 20,041 500,001 3,131,035 1,678,017
Transfer from investment in subsidiaries (see note 18 (b) above) – – 528,402 –
Transfer to investment in subsidiaries (see note 18 (b) above) – – (671,639) –
Balance, end of year 520,042 500,001 4,665,815 1,678,017
22 Property and equipment

(a) Group:
The movement on these accounts during the year is as follows:
Freehold,
Construction Leasehold Furniture
Work in Land and Fittings & Computer Motor
Progress Improvements Equipment Hardware Vehicles Total
COST/VALUATION N’000 N’000 N’000 N’000 N’000 N’000
Beginning of year 5,268,957 14,377,886 10,892,471 5,407,781 4,976,867 40,923,962
Additions 488,358 1,501,234 1,155,586 707,268 537,785 4,390,231
Disposals (519,878) (616,580) (512,081) (540) (483,580) (2,132,659)
Reversals (81,279) (3,781) (4,410) – – (89,470)
Write off (18,657) – – – – (18,657)
Transfers (696,879) 922,732 (140,302) (6,633) (78,918) –
Transfer to investment
property (see note 19) – (71,830) – – – (71,830)
Translation difference (185,242) (70,630) (39,840) (30,023) 9,302 (316,433)
End of year 4,255,380 16,039,031 11,351,424 6,078,176 4,961,456 42,685,467
Accumulated Depreciation
Beginning of year – 2,000,527 4,974,532 3,195,729 2,808,184 12,978,972
Charge for the year – 940,112 1,696,093 1,175,341 976,008 4,787,554
Disposals – (126,186) (64,176) – (383,369) (573,731)
Reversals – – – – – –
Translation difference – 178,629 (208,204) 154,073 (21,902) 102,596
End of year – 2,993,082 6,398,245 4,525,143 3,378,921 17,295,391
124 Access Bank Plc

Net Book Value

End of year 4,255,380 13,045,949 4,953,179 1,553,033 1,582,535 25,390,076
(i) No leased asset is included in the above fixed assets accounts.

(ii) Authorised and contracted capital commitments as at the balance sheet date amounted to N24,535,178 (December 2009:
N123,420,514).
(b) Bank:
The movement on these accounts during the year is as follows:
Freehold,
Construction Leasehold Furniture
Work in Land and Fittings & Computer Motor
Progress Improvements Equipment Hardware Vehicles Total
Cost N’000 N’000 N’000 N’000 N’000 N’000
Additions 477,722 1,225,516 842,594 432,610 397,197 3,375,639
Disposals (478,143) – (85,014) (540) (337,840) (901,537)
Reversals (81,279) (3,781) (4,410) – – (89,470)
Transfers (266,886) 223,662 41,588 1,636 – –
Transfer to investment
property (see note 19) – (71,830) – – – (71,830)
Write off (18,657) – – – – (18,657)
End of year 4,087,845 11,431,244 9,242,307 4,641,425 3,963,790 33,366,611
Beginning of year – 1,462,767 4,273,530 2,769,766 2,412,312 10,918,375
Charge for the year – 677,615 1,362,393 839,957 725,692 3,605,657
Disposals – – (47,866) (323) (270,743) (318,932)
Reversals – – – – – –
End of year – 2,140,382 5,588,057 3,609,400 2,867,261 14,205,100
Net Book Value

End of year 4,087,845 9,290,862 3,654,250 1,032,025 1,096,529 19,161,511
(i) No leased asset is included in the above fixed assets accounts.

(ii) Authorized and contracted capital commitments as at the balance sheet date amounted to N24,535,178 (December 2009:
N123,420,514).
23 Equipment on Lease:
Equipment on lease represents fixed assets leased to customers under operating lease arrangements. The movement on this
account during the year is as follows:
Motor Vehicle Equipment Total
Cost N’000 N’000 N’000
Beginning of year 190,548 5,482,231 5,672,779
Additions – 152,000 152,000
Disposals – (139,000) (139,000)
Reversals – – –
End of year 190,548 5,495,231 5,685,779
Charge for the year 7,131 653,382 660,513
Disposal – (39,383) (39,383)
End of year 188,896 3,935,838 4,124,734
Net Book Value

End of year 1,652 1,559,393 1,561,045
Access Bank Plc 125

24 Goodwill
(a) The movement on this account during the year is as follows:
N’000 N’000 N’000 N’000
Balance, beginning of year 1,738,148 1,738,148 – –
Addition during the year – – – –
Balance, end of year 1,738,148 1,738,148 – –
Impairment (306,437) – – –
Carrying value 1,431,711 1,738,148 – –
(b) Goodwill is attributable to the following subsidiaries:

N’000 N’000 N’000 N’000
Access Bank Rwanda 681,007 681,007 – –
Finbank Burundi 369,714 369,714 – –
Access Bank, Cote D’ivoire 687,427 687,427 – –
1,738,148 1,738,148 – –
The purchased goodwill arising from the Bank’s investment in Access Bank, Cote d’Ivoire was impaired as at 31 December 2010
by N306.4 million based on directors’ assessment of the future cashflows and country risk.
25 Customer deposits
(a) Deposits and other accounts comprise:
Demand N’000 N’000 N’000 N’000
– Current 166,582,337 133,379,004 150,191,179 111,112,350
– Domiciliary 67,747,277 23,168,866 66,324,840 23,385,539
Savings 15,308,599 12,481,014 13,325,442 9,415,973
Term and call 237,287,633 269,530,113 210,700,654 261,922,230
486,925,846 438,558,997 440,542,115 405,836,092
(b) The maturity profile of deposits and other accounts is as follows:

N’000 N’000 N’000 N’000
Under 1 month 361,949,520 260,147,651 328,618,920 236,712,183
1-3 months 94,250,745 173,663,918 92,149,398 168,215,202
3-6 months 14,273,365 1,142,605 10,663,440 528,793
6-12 months 14,730,097 3,519,372 8,278,228 294,460
Over 12 months 1,722,121 85,451 832,130 85,454
486,925,846 438,558,997 440,542,115 405,836,092
26 Due to banks
(a) Balances due to banks comprise:
N’000 N’000 N’000 N’000
Foreign borrowing (See note (b) below) 19,786,001 19,994,954 20,996,158 19,994,954
Inter-bank takings 20,793,054 11,619,261 760,262 7,494,000
Current account balances of banks 10,473,780 – – –
Due to multi-lateral agencies (see note (c) below) 12,986,518 11,602,626 12,986,518 11,536,729
64,039,353 43,216,841 34,742,938 39,025,683
126 Access Bank Plc

(b) Foreign borrowing represents trade related loans from foreign correspondent banks in respect of letters of credit negotiated on
behalf of customers. The corresponding receivables from these customers are included in loans and advances.
(c) Due to multilateral agencies represents outstanding obligation in respect of on-lending facilities not yet disbursed as at year end
(see note 27) and it includes:
N’000 N’000 N’000 N’000
European Investment Bank 477,140 544,838 477,140 544,838
African Development Bank 4,142,759 4,409,242 4,142,759 4,409,242
Belgian Investment Company 456,150 400,099 456,150 400,099
Finnish Fund for Industrial Cooperation 760,250 749,400 760,250 749,400
International Finance Corporation 1,710,563 1,686,150 1,710,563 1,686,150
Netherlands Development Finance Company (FMO) 3,485,285 3,747,000 3,485,285 3,747,000
Due to Bank of Industry 954,371 – 954,371 –
Due to Central Bank of Nigeria under the
Commercial Agriculture Credit Scheme 1,000,000 – 1,000,000 –
Others – 65,897 – –
12,986,518 11,602,626 12,986,518 11,536,729
(d) The maturity profile of due to banks is as follows:
N’000 N’000 N’000 N’000
Under 1 month 13,429,601 24,076,348 231,394 20,379,778
1–3 months 33,002,082 11,632,692 16,189,432 11,138,105
3–6 months 5,679,465 7,507,800 5,335,593 7,507,800
6–12 months – – – –
Over 12 months 11,928,205 – 12,986,519 –
64,039,353 43,216,841 34,742,938 39,025,683
27 On-lending facilities
(a) On-lending facilities represent obligations to foreign multilateral agencies in respect of the Bank’s role as an intermediary (see
Note 15) in respect of facilities disbursed to customers.
N’000 N’000 N’000 N’000
European Investment Bank (see note (b)) 1,045,708 2,300,454 1,045,708 2,300,454
Due to Belgian Investment Company – 49,541 – 49,541
Due to African Development Bank (see note (c)) 418,741 781,969 418,741 781,969
Due to Nigeria Export Import Bank 100,000 – 100,000 –
Due to Central Bank of Nigeria under the Commercial
Agriculture Credit Scheme (see note (d)) 2,976,000 – 2,976,000 –
Due to Bank of Industry (see note (e)) 18,145,329 – 18,145,329 –
22,685,778 3,131,964 22,685,778 3,131,964
(b) The amount of N1,045,708,000 (USD 6,877,396) represents outstanding balance in the on-lending facility granted to the Bank
by EIB (European Investment Bank) in September 2005 for a period of 9 years. Principal and interest are repayable quarterly and
semi annually based on the terms of the facilities with the obligor. Interest is reset every 90 days at 2.2% – 2.9% above LIBOR.
The Bank provided negative pledge as a security for this facility. The undisbursed balance is included in due to other banks (see
note 26 (c)).
(c) The amount of N418,741,000 (USD 2,753,969) represents the outstanding balance in the on-lending facility granted to the
Bank by ADB (African Development Bank) for a period of 9 years commencing in August 2007 with a moratorium of 2 years.
The principal amount is repayable semi annually after the moratorium year while interest is payable semi annually at 3% above
LIBOR. The Bank provided negative pledge as a security for this facility. The undisbursed balance is included in due to banks (see
note 26 (c)).
Access Bank Plc 127

(d) The amount of N2,976,000,000 represents the outstanding balance in the on-lending facility granted to the Bank by Central
Bank of Nigeria in collaboration with the Federal Government of Nigeria (FGN) in respect of Commercial Agriculture Credit
Scheme (CACS) established by both CBN and the FGN for promoting commercial agricultural enterprises in Nigeria. The
facility is for a maximum period of 7 years at a zero percent interest rate to the Bank. The principal amount is repayable at the
expiration of the loan. The Bank did not provide security for this facility. The undisbursed balance is included in due to other
banks (see note 26 (c)).
(e) The amount of N18,145,329,000 represents an intervention credit granted to the Bank by the Bank of Industry (BOI), a
company incorporated in Nigeria for the purpose of refinancing / or restructuring existing loans to Small and Medium Scale
Enterprises (SMEs) and manufacturing companies. The total facility is secured by Nigerian Government Securities worth
N22,660,000,000 and has a 15 year tenor. A management fee of 1% deductible at source is paid by the Bank under the
on-lending agreement and the Bank is under obligation to on-lend to customers at an all-in interest rate of 7% per annum.
Though the facility is meant for on-lending to borrowers in specified sectors, the Bank remains the primary obligor to the BOI
and therefore assumes the risk of default of customers. The undisbursed balance is included in due to other banks (see note 26
(c)).
(f) The maturity profile of amounts due to foreign multilateral agencies stated above for on-lending is as follows:
N’000 N’000 N’000 N’000
3–6 months 100,000 – 100,000 –
6–12 months 18,145,329 – 18,145,329 –
Over 12 months 4,440,449 3,131,964 4,440,449 3,131,964
22,685,778 3,131,964 22,685,778 3,131,964
28 Debt securities in issue

(a) Debt securities comprise:
N’000 N’000 N’000 N’000
Access Bank bond holders (see note (b) below) – 2,604,277 – 2,604,277
Other bonds issued – – – –
– 2,604,277 – 2,604,277
(b) (i) The movement in the convertible bond during the year is as follows:
N’000 N’000 N’000 N’000
Redemption during the year (see note (b (ii)) below) (2,604,277) (5,700,565) (2,604,277) (5,700,565)
Conversion to ordinary shares – (551,000) – (551,000)
– 2,709,624 – 2,709,624
Unamortized bond issue cost – (105,347) – (105,347)

Balance, end of year – 2,604,277 – 2,604,277
(ii) The final installment balance of the 14% redeemable convertible bond was fully redeemed on 15 June 2010.
128 Access Bank Plc

29 Other liabilities
(a) Other Liabilities comprise:
N’000 N’000 N’000 N’000
Liability under repurchase agreement (see note 21(a)) 5,700,000 – 5,700,000 –
Foreign currency denominated liabilities (see note 13(c)) 25,609,806 6,076,115 25,609,806 6,076,115
Interest payable 1,139,969 1,113,038 777,944 851,000
Accrued expenses 1,220,380 2,486,432 650,876 905,294
Managers’ cheques 3,400,913 4,125,279 3,351,461 4,040,154
Unearned income 67,932 21,692 – –
Staff Pension Fund 102,727 65,775 47,687 65,775
Borrowings 80,921 – – –
Derivative liability (see note (21(c)) 725,007 1,833,327 – –
Unclaimed dividend (see note 13(b) 5,428,751 4,192,687 – –
Due to customers 936,889 1,125,660 – –
Collections 4,535,706 3,513,332 4,535,706 3,513,332
Others 2,940,907 6,352,446 2,496,282 1,637,384
51,889,908 30,905,783 43,169,762 17,089,054
30 Share capital
(a) Authorised:
N’000 N’000 N’000 N’000
Ordinary shares
18,000,000,000 Ordinary shares of 50 kobo each 9,000,000 9,000,000 9,000,000 9,000,000
Preference shares
2,000,000,000 Preference shares of 50k each 1,000,000 1,000,000 1,000,000 1,000,000
10,000,000 10,000,000 10,000,000 10,000,000
Issued and fully-paid
17,888,251,478 (December 2009: 16,262,046,799)
Ordinary shares of 50k each 8,944,126 8,131,024 8,944,126 8,131,024
(b) The movement on this account during the year was as follows:
N’000 N’000 N’000 N’000
Issue of shares – 23,894 – 23,894
Transfer from bonus issue reserve (see note (c)) 813,102 – 813,102 –
(c) The shareholders declared bonus shares of 1 new ordinary share for 10 previously held at the Annual General Meeting on 26
May 2010. The bonus issue reserve in respect of the issue was capitalised to share capital during the year.
31 Capital reserve
This balance represents the surplus nominal value of the reconstructed shares of the Bank which was transferred from the share
capital account to the capital reserve account after the share capital reconstruction in October 2006. The shareholders approved the
reconstruction of 13,956,321,723 ordinary shares of 50k each of the Bank in issue to 6,978,160,860 ordinary shares of 50k each by
the creation of 1 ordinary share for 2 ordinary shares previously held.
Access Bank Plc 129

32 Share premium
The movement on this account during the year is as follows:
N’000 N’000 N’000 N’000
Premium from share issue (see note 30 (c) above) – 527,106 – 527,106
Transfer to bonus reserve (see note 33(g) below) – (813,102) – (813,102)
33 Other reserves
(a) Other reserves comprise:
N’000 N’000 N’000 N’000
Statutory reserve (see (b) below) 16,306,810 14,367,094 16,306,810 14,367,094
Small and Medium industries reserve (see note (c) below) 826,568 800,393 826,568 800,393
Fixed assets revaluation reserve (see (f) below) 51,727 538,909 – –
General reserve (see (d) below) (1,140,641) (7,482,217) 6,777,393 (610,507)
Bonus reserves (see (g) below) – 813,102 – 813,102
Foreign currency translation reserve (see (e) below) 32,618 669,535 – –
16,077,082 9,706,816 23,910,771 15,370,082
(b) The movement on the statutory reserve is as follows:

N’000 N’000 N’000 N’000
Transfer from profit and loss account 1,939,716 – 1,939,716 –
In accordance with existing legislation, the Bank transferred 15% of its profit after tax to the statutory reserve account.
(c) (i) The movement on the small and medium industries reserve is as follows:
N’000 N’000 N’000 N’000
Transfer from/(to) general reserve 26,175 (144,616) 26,175 (144,616)
(ii) The SMEEIS reserve is maintained to comply with the Central Bank of Nigeria (CBN) requirement that all licenced banks set
aside a portion of the profit after tax in a fund to be used to finance equity investment in qualifying small and medium scale
enterprises. Under the terms of the guideline (amended by a CBN letter dated 11 July 2006), the contributions will be 10%
of profit after tax and shall continue after the first 5 years but banks’ contributions shall thereafter reduce to 5% of profit
after tax.
However, this is no longer mandatory. The small and medium scale industries equity investment scheme reserves are non-
distributable.
(d) The movement on general reserve during the year is as follows:
N’000 N’000 N’000 N’000
Balance, beginning of year (7,482,217) 9,449,176 (610,507) 11,475,611
Adjustment to opening reserve 308,527 (1,531,445) – –
Opening balance, restated (7,173,690) 7,917,731 (610,507) 11,475,611
Reversal of share of prior year losses in associate (see note 20) 332,027 – – –
Transfer to/(from) SME reserve (26,175) 144,616 (26,175) 144,616
Transfer from profit and loss account 5,727,197 (4,194,582) 7,414,075 (880,752)
Dividend paid – (11,349,982) – (11,349,982)
Balance, end of year (1,140,641) (7,482,217) 6,777,393 (610,507)
130 Access Bank Plc

(e) The movement on the foreign currency translation reserve during the year was as follows:
N’000 N’000 N’000 N’000
Balance, beginning of year 669,535 1,355,269 – –
Translation loss during the year (636,917) (685,734) – –
(f) Revaluation reserve represents surplus on revaluation of the fixed assets of a subsidiary company and an associated entity’s fixed
assets recognised directly in reserves and comprises:
N’000 N’000 N’000 N’000
Subsidiary companies (see note 22) 51,727 51,727 – –
Associated company (see note 20) – 487,182 – –
(g) Bonus issue reserve comprise:

N’000 N’000 N’000 N’000
Balance, beginning of year 813,102 – 813,102 –
Transfer from share premium account – 813,102 – 813,102
Transfer to share capital account (see note (30) above) (813,102) – (813,102) –
Balance, end of year – 813,102 – 813,102
34 Non-controlling interest
The movement in non-controlling interest during the year is shown below:
Group Group
Dec-10 Dec-09
N’000 N’000
Balance, beginning of year 858,291 1,028,533
Capital contributed by minorities during the year 140,856 606,264
Share of loss for the year (176,442) (207,584)
Transfer to reserves (16,876) (282,295)
Loss in equity interest – (123,168)
Translation reserve (106,497) (163,459)
699,332 858,291
35 Earnings and dividend per share

12 Months 9 Months 12 Months 9 Months
N’000 N’000 N’000 N’000
Profit/(loss) attributable to equity holders 11,244,563 (4,194,582) 12,931,441 (880,752)
Declared dividend 3,577,650 11,349,982 3,577,650 11,349,982
Earnings/(loss) per share – Basic 63k (26)k 72k (5)k
– Adjusted 63k (23)k 72k (5)k
Declared dividend per share 20k 70k 20k 70k
Number of ordinary shares of 50k 17,888,252 16,262,047 17,888,252 16,262,047
Access Bank Plc 131

36 Acceptances, bonds, guarantees and other obligations

These comprise:
(a) Amount for the account of customers:

N’000 N’000 N’000 N’000
Guaranteed BAs/CPs 66,918 233,037 – –
Transaction related bonds and guarantees (see note (b) below) 135,855,769 89,065,023 125,877,403 85,106,123
Letters of credit 102,128,235 48,312,144 68,574,528 40,530,788
Guaranteed facilities 830,500 445,307 – –
238,881,422 138,055,511 194,451,931 125,636,911
(b) Included in transaction related bonds are cash collaterised bonds and guarantees amounting to N7,728,351,732 (December
2009: N21,508,995,172).
37 Net cash flows from operating activities before changes in operating assets:
This comprises:
N’000 N’000 N’000 N’000
Add: tax charge/(credit) for the year 5,100,749 920,601 4,737,143 922,475
16,168,870 (3,481,565) 17,668,584 41,723
Adjustments to reconcile profit/(loss) after taxation to

net cash flow from operations:
Depreciation – Fixed assets (see note 8 (a)) 4,787,554 3,492,324 3,605,659 2,596,811
– Equipment on lease (see note (8)) 660,513 424,479 660,513 424,479
(Profit)/loss on disposal of fixed assets (127,552) (124,840) (142,500) (24,706)
Loss on disposal of equipment on lease 54,286 – 54,286 –
Loss on disposal of investment properties 84,041 – 84,041 –
Impairment loss on investment property 315,698 – 315,698 –
Impairment loss on long term investment – – 264,557 –
Provision for risk assets (see note 9) 4,524,369 16,650,665 2,917,513 16,171,832
Provision for other assets (412,172) 1,480,002 (411,264) 1,257,389
Impairment charge/(reversal) on SME investment (26,175) 144,616 (26,175) 144,616
Impairment charge on goodwill 306,437 – – –
Fixed assets written off 18,657 594,686 18,657 258,620
Share of associate’s loss – 775,431 – –
Interest paid on borrowings 186,525 605,526 172,508 605,526
Loss on underwriting commitment – 3,256,198 – 3,256,198
Dividend income received (199,489) (184,955) (199,440) (184,955)
Revaluation loss/(gain) – (113,900) – (113,900)
Net cash flow from operating activities 26,341,562 23,518,668 24,982,637 24,433,633
38 Changes in operating assets

This comprises:
N’000 N’000 N’000 N’000
(Increase)/decrease in operating assets
Cash reserve balance (570,240) 2,824,461 (570,240) 2,824,461
Investment securities – short term 25,009,672 (23,249,279) 25,716,012 (23,705,878)
Loans and advances (61,944,500) 13,967,059 (57,124,801) 15,040,185
Other facilities (19,553,815) 2,011,498 (19,553,815) 2,011,498
Advances under finance leases 1,165,580 (486,621) 1,032,929 (10,668)
Other assets (5,347,838) (193,542) (7,992,208) 1,339,993
Increase/(decrease) in operating liabilities

Deposits and other accounts 48,366,849 11,975,385 34,706,024 3,692,369
Due to banks 20,822,512 13,033,816 (4,282,745) 8,514,384
132 Access Bank Plc

On-lending facilities 19,553,815 (2,011,497) 19,553,814 (2,011,497)

Other liabilities 20,984,125 (16,764,480) 26,080,708 (19,714,196)
48,486,160 1,106,800 17,565,678 (12,019,349)
39 Cash and cash equivalents

For the purpose of reporting on cash flows, cash and cash equivalents include cash, treasury bills and other eligible bills, operating
account with other banks and amounts due from other banks.
Cash and balances with central banks N’000 N’000 N’000 N’000
(less restricted balances) (see note 11(a)) 21,829,262 61,596,910 14,082,361 55,247,133
Treasury bills (see note 12) 35,857,812 17,207,973 11,618,000 10,926,086
Due from other banks (see note 13) 103,182,124 93,177,107 72,177,480 76,191,705
160,869,198 171,981,990 97,877,841 142,364,924
40 Contravention of the Banks and other Financial Institutions Act of Nigeria and CBN Circulars
The Bank was charged a penalty of N94 million for non-compliance with CBN circular BSD/DO/CIR/VOL.1/01/2001 on appointment
of top management in banks during the year ended 31 December 2010 (2009: Nil).
41 Claims and litigation
The Bank, in its ordinary course of business, is presently involved in 174 cases as a defendant (31 December 2009: 131) and 55 cases
as a plaintiff (31 December 2009: 58). The total amount claimed in the 174 cases against the Bank is estimated at N29,131,136,389
(31 December 2009: N13,406,430,457) while the total amount claimed in the 55 cases instituted by the Bank is N7,768,823,071
(31 December 2009: N14,125,333,559). The Directors having sought the advice of professional legal counsel are of the opinion that based
on the advice received, no significant liability will crystallise from these cases. No provisions are therefore deemed necessary for these claims.
In the normal course of business, the group is a party to financial instruments with off-balance sheet risks. These instruments are
issued to meet the credit and other financial requirements of customers. The total off-balance sheet assets for the Group was
N238,881,422,000 (2009: N138,055,511,000) and N194,451,931,000 (2009: N125,636,911,000) was for the Bank.
42 Prior year corresponding balances
Certain prior year corresponding balances have been reclassified to conform with the current year presentation format and enhance
comparability as below:
(a) Interest and similar income
Group Bank
9 months 9 months
Dec-09 Dec-09
N’000 N’000
Balance as at 31 December 2009 47,563,081 42,932,635
Reclassification to interest and similar expense (see note (b) below) 18,904,086 18,904,086
Balance as at 31 December 2009 as restated 66,467,167 61,836,721
(b) Interest and similar expense

Group Bank
9 months 9 months
Dec-09 Dec-09
N’000 N’000
Balance as at 31 December 2009 11,337,058 9,818,905
Reclassification from interest and similar income (see note (a) above) 18,904,086 18,904,086
Balance as at 31 December 2009 as restated 30,241,144 28,722,991
43 Related party transactions

(a) Related party deposit
As at year ended 31 December 2010, the Bank had various deposits from Directors and related companies totalling
N6,986,519,320 (December 2009: N8,019,597,238).
(b) Risk assets outstanding as at 31 December 2010
Direct credit assets
As at the year ended 31 December 2010, the Bank had various credit facilities outstanding from companies whose directors
are also directors of Access Bank Plc at rates and terms comparable to other facilities in the Bank’s portfolio. An aggregate of
N58,866,046,399 (December 2009: N49,200,334,879) was outstanding on these various facilities at the end of the year, of
which N47,204,787 (December 2009: N35,420,589) were non-performing. Details of related party credits are presented below:
Access Bank Plc 133

Relationship to
Name of the company/individual Reporting Institution Name of the Directors Facility Type
Integrated Wireless Technologies Chairman Mr Gbenga Oyebode Time Loan
Aluko & Oyebode Chairman Mr Gbenga Oyebode Term Loan
Term Loan
On Lending
Asset Management Group Ltd. Chairman Mr Gbenga Oyebode Term Loan
MTN Communications Chairman Mr Gbenga Oyebode Time Loan
Staff Investment Trust Scheme Staff Mr. Tek Koroye
Mr Herbert Wigwe Term Loan
Yinka Folawiyo & Sons Ltd. Director Mr. Tunde Folawiyo Term Loan

F Energy Limited Director Mr. Tunde Folawiyo Overdraft

Term Loan

DTD Services Ltd Director Mr Tunde Folawiyo Term Loan
Decoll Prime Links Limited Director Mr Dere Otubu Overdraft
Overdraft
Finance Lease
Standand Trust Assurance Plc Director Mr Dere Otubu Time Loan
Term Loan
Time Loan
SIC Property and Investment Company Director Mr Dere Otubu Overdraft
Mr Aigboje Aig-Imoukhuede Overdraft
Marina Securities Limited Director Mr Herbert Wigwe Time Loan
Finance Lease
Etareotu Doris Koroye Director Mr Tek Koroye Finance Lease
Obeahon-Ohiwerei Isioma Gloria Director Mr Obeahon Ohiwerei Finance Lease
Overdraft
USANCE
Coscharis Motors Limited Director Dr Cosmas Maduka Term Loan
Coscharis Technologies Limited Director Dr Cosmas Maduka Overdraft
Simply Gifts & Interiors Director Mr Okey Nwuke Auto Loan
VICTORIA M SULEIMAN Ex-Director Oba Shafi Sule Overdraft
Alh Ahmed BH Ex-Director Alh Ahmadu Haruna

DotDot Nig Ltd Ex-Director Hon Dotun Animashaun Overdraft

Off balance sheet engagements

Included in off balance sheet engagements is an amount of N1.39 billion (December 2009: N3.66 billion) representing Bonds and
Guarantees to companies in which certain directors and shareholders have interests. The balances as at 31 December 2010 are as follows:
Relationship to
Name of Company/Individual Reporting Institution Facility type Outstanding credit
Coscharis Motors Limited Director Clean line LC Unconfirmed 760,250,000
operative LC 308,052,090
Bid bond 3,734,500
Coscharis Technologies Limited Director Clean line LC 322,409,586

1,394,446,175
134 Access Bank Plc

Amount Status Nature of security

4,875,000 Performing Debenture
9,583,000 Performing Personal Guarantee
12,901,000 Performing Personal Guarantee
849,455,575 Performing Domiciliation
2,120,554,331 Performing Domiciliation
16,486,720,000 Performing Negative Pledge
8,250,875,000 Performing Lien on Shares

300,023,000 Performing Legal Mortgage
Cash Backed
Lien On shares
19,584,925,000 Performing All Assets Debenture Lien on Deposits
Legal Mortgage
Corporate guarantee
Personal guarantee
869,668,000 Performing Insurance
Legal Mortgage
Corporate guarantee
Personal guarantee
1,294,874,000 Performing Insurance
130,559,706 Performing Legal Mortgage
221,970,000 Performing Lien on deposit
18,055,000 Performing Vehicle financed
450,000,000 Performing Debenture
2,500,000,000 Performing Shares, cash and guarantee
366,000,000 Performing
5,096,000 Performing
303,435,000 Performing Lien on shares
1,200,000,000 LM on Property valued at N2.5b
823,000 Performing Equipment financed
636,930,000 Performing Negative Pledge
192,159,000 Performing Corporate Guarantee
669,000 Performing Vehicle financed
10,572,000 Non Performing NA
10,430,787 Non Performing Legal Mortgage
Mortgage
PG
26,202,000 Non Performing Legal Mortgage
58,866,046,399
Status Nature of security

Performing Negative pledge
Performing
Access Bank Plc 135

44 (a) Compliance Plan with Central Bank of Nigeria’s Access Investment and Securities Limited, a wholly
Regulation on the Scope of Banking Activities owned subsidiary of Access Bank Plc, is the investment
Section 6 (1) of the Central Bank of Nigeria Regulation management subsidiary of the Bank. The Company
on the Scope of Banking activities and ancillary matters commenced operation in 2008 and currently has an
issued on 7 September 2010 requires every bank currently authorised share capital N500 million.
operating under a universal banking licence to submit to The Board of Directors resolved that the Company
the Central Bank of Nigeria for approval a compliance would undergo members’ voluntary winding up except
plan duly approved by the bank’s Board of Directors. The if a willing buyer is found before the conclusion of the
regulation requires banks to divest from all non-banking winding up process.
businesses and apply for a new type of banking licence
Access Homes and Mortgages Limited, a wholly
based on the decision of the Bank’s Board of Directors.
owned subsidiary of Access Bank Plc, was incorporated in
The Bank’s compliance plan which was duly approved by 2008 and licensed by CBN to carry on mortgage banking
the Board of Directors on 28 October 2010 is as follows: business in January 2009 with an authorised share capital
Proposed type of banking licence of N1 billion.
The Board of Directors of the Bank reviewed the options The Board of Directors resolved that the Bank will
provided by the new licensing regime instituted by the integrate the operations of Access Homes and Mortgages
Central Bank of Nigeria and resolved that the Bank should Limited into its own operations and the assets and
apply for an International Commercial Banking licence. liabilities of the company will be transferred to the Bank.
By this, the Bank shall maintain a minimum paid up share The financial position and performance of these
capital of N50,000,000,000 (fifty billion naira) as required subsidiaries have been consolidated as control still exists
by the new CBN Regulation No 01, 2010 on the Scope, as at the balance sheet date.
Conditions and Minimum Standards for Commercial
(b) The total assets, net assets and gross earnings of
Banks.
the subsidiaries to be disposed and/or wound up are
Divestment from non-banking subsidiaries presented below:
The Bank has three non-banking subsidiaries which United Access
Securities Investment
are: United Securities Limited, Access Investment and
Limited and Securities Total
Securities Limited and Access Homes and Mortgages N’000 N’000 N’000
Limited.
Total assets 6,093,521 604,898 6,698,419
United Securities Limited, a wholly owned subsidiary of
Access Bank Plc, is a Securities and Exchange Commission Net assets 467,701 529,113 996,814
licenced provider of securities register and data
Gross earnings 318,975 9,684 328,659
administration services. The Company was acquired by
the Bank in 2008 and currently has an authorised share
capital of N50 million. 45 Post balance sheet event
The Board of Directors has resolved to sell the Company There were no post balance sheet events which could have a
as a going concern to an acceptable core investor. material effect on the financial position of the Group as at 31
December 2010 or the profit for the year ended on that date

that have not been adequately provided for or disclosed.
136 Access Bank Plc

Statement of Value Added Business Review
Governance

N’000 N’000 N’000 N’000
Gross earnings 91,142,064 84,980,554 79,065,123 75,847,752
Interest expense
– Local (17,029,265) (26,054,378) (17,043,282) (26,050,382)
– Foreign (4,404,932) (3,581,241) (2,323,017) (2,067,083)
Fees and commission expense – – – –
69,707,867 55,344,935 59,698,824 47,730,287
Group’s share of associate’s loss – (775,431)
Loan loss expense: (4,524,369) (16,650,665) (2,917,513) (16,171,832)
Allowance on other assets (183,788) (4,880,816) (142,816) (4,658,203)
Allowance no longer required
Bought-in-materials and services
– Local (27,580,212) (21,831,692) (22,989,212) (16,332,621)
– Foreign – – – –
Value added 37,419,498 11,206,331 33,649,283 10,567,631
Distribution of Value Added % % %

To employees:
Employees costs 15,616,036 42 10,165,567 91 11,542,019 35 6,899,092 65
To government
Government as taxes 5,100,749 14 920,601 8 4,737,143 14 922,475 9
To providers of finance
Interest on borrowings 186,525 – 605,526 5 172,508 – 605,526 6
Interim dividend to shareholders 3,577,650 10 – – 3,577,650 11 – –
Retained in business:
– For replacement of fixed assets 4,787,554 13 3,492,324 31 3,605,659 11 2,596,811 25
– For replacement of equipment on lease 660,513 2 424,479 4 660,513 2 424,479 4
– To pay interim dividend 5,366,476 14 – – 5,366,476 16 – –
– To augment reserve 2,123,995 6 (4,402,166) (39) 3,987,315 12 (880,752) (8)
37,419,498 100 11,206,331 100 33,649,283 100 10,567,631 100
Access Bank Plc 137

Four-year Financial Summary
Group
31-Dec-10 31-Dec-09 31-Mar-09 31-Mar-08
N’000 N’000 N’000 N’000
Assets
Cash and balances with Central Bank of Nigeria 25,395,293 64,592,701 50,244,054 34,818,118
Treasury bills 35,857,812 17,207,973 12,781,254 102,499,255
Due from other banks 103,182,124 93,177,107 102,784,916 550,887,906
Loans and advances to customers 429,782,319 383,778,168 418,194,487 245,836,040
On-lending facilities 22,685,778 3,131,963 5,092,026 5,096,061
Advances under finance lease 3,084,393 4,249,973 3,725,766 2,497,683
Investment securities 119,665,960 75,057,381 72,286,917 59,471,422
Investment in subsidiaries – – – 4,034,589
Investment properties 12,943,078 1,404,000 – –
Investment in associates – 300,155 650,547 145,000
Other assets 23,287,133 17,292,653 17,846,304 13,188,296
Property and equipment 25,390,076 27,944,990 23,390,109 14,107,593
Equipment on lease 1,561,045 2,169,175 1,591,555 1,363,474
Deferred tax asset 557,050 1,739,551 –
Goodwill 1,431,711 1,738,148 1,738,148 –
804,823,772 693,783,938 710,326,082 1,033,945,437
Liabilities
Customer deposits 486,925,846 438,558,997 430,096,946 353,746,401
Due to other banks 64,039,353 43,216,841 30,183,025 69,402,840
On-lending facilities 22,685,778 3,131,964 5,143,461 5,147,536
Debt securities in issue – 2,604,277 8,961,189 11,947,500
Current income tax 3,492,485 6,982,029 6,586,353 2,659,923
Other liabilities 51,889,908 30,905,783 44,156,931 415,851,544
Deferred taxation 419,945 37,999 10,053 624,523
Borrowings – – – 2,704,505
629,453,315 525,437,890 525,137,958 862,084,772
Net Assets 175,370,457 168,346,048 185,188,124 171,860,665
Capital And Reserves

Share capital 8,944,126 8,131,024 8,107,130 8,071,252
Capital reserve 3,489,080 3,489,080 3,489,080 3,489,080
Share premium 146,160,837 146,160,837 146,446,833 146,047,149
Other reserves 16,077,082 9,706,816 26,116,548 14,197,047
Non-controlling interest 699,332 858,291 1,028,533 56,137
175,370,457 168,346,048 185,188,124 171,860,665
Commitments and contingents 238,881,422 138,055,511 142,633,973 155,725,829
Gross earnings 91,142,064 84,980,554 89,552,702 57,627,098
(Loss)/profit before taxation 16,168,870 (3,481,565) 26,185,429 19,042,106
(Loss)/profit after taxation 11,068,121 (4,402,166) 20,814,216 16,056,464
Non controlling interest 176,442 207,584 – –
Profit attributable to equity holders 11,244,563 (4,194,583) 20,814,216 16,056,464
Dividend paid 3,577,650 11,349,982 10,492,625 2,791,263
(Loss)/earnings per share - Basic 63k (26)k 141k 173k
– Adjusted 63k (23)k 128k 99k
Number of ordinary shares of 50k 17,888,252 16,262,047 16,214,258 16,142,502
* Declared dividend represents the dividend declared and paid during the year.
138 Access Bank Plc

Five-year Financial Summary Business Review
Governance
Bank
31-Dec-10 31-Dec-09 31-Mar-09 31-Mar-08 31-Mar-07
12 months 9 months 12 months 12 months 12 months
N’000 N’000 N’000 N’000 N’000
Assets
Cash and balances with Central Bank of Nigeria 17,648,392 58,242,924 47,208,865 34,742,542 30,496,874
Treasury bills 11,618,000 10,926,086 11,480,869 101,488,368 32,832,623
Due from other banks 72,177,480 76,191,705 88,114,393 551,067,355 127,936,377
Loans and advances to customers 403,178,957 360,387,649 391,688,687 244,595,621 107,750,578
On-lending facilities 22,685,778 3,131,963 5,092,026 5,096,061 3,256,564
Advances under finance lease 2,741,092 3,774,020 3,725,766 2,497,683 1,024,185
Investment securities 116,811,620 72,732,689 71,449,604 59,456,866 10,280,256
Investment in subsidiaries 24,261,123 23,299,346 20,390,610 4,749,375 211,021
Investment properties 12,943,078 1,404,000 – – –
Investment in associates – 145,000 145,000 145,000 72,500
Other assets 22,172,504 13,677,803 15,841,206 13,275,063 5,521,365
Property and equipment 19,161,511 20,154,091 18,132,114 13,364,613 8,161,511
Equipment on lease 1,561,045 2,169,175 1,591,555 1,363,474 1,071,340
Deferred tax asset – 1,338,268 4,346 – –
Goodwill – – – – –
726,960,580 647,574,719 674,865,041 1,031,842,021 328,615,194
Liabilities
Customer deposits 440,542,115 405,836,092 405,657,055 351,789,279 205,234,734
Due to other banks 34,742,938 39,025,683 30,511,299 71,952,549 6,616,718
On-lending facilities 22,685,778 3,131,964 5,143,461 5,147,536 3,289,458
Debt securities in issue – 2,604,277 8,961,189 11,947,500 –
Current income tax 2,959,976 6,736,626 6,471,362 2,659,923 1,751,833
Other liabilities 43,169,762 17,089,054 33,289,918 415,725,624 82,821,752
Deferred taxation 355,197 – – 617,584 515,808
544,455,766 474,423,696 490,034,284 859,839,995 300,230,303
Net Assets 182,504,814 173,151,023 184,830,757 172,002,026 28,384,891
Capital and Reserves

Share capital 8,944,126 8,131,024 8,107,130 8,071,252 3,489,081
Capital reserve 3,489,080 3,489,080 3,489,080 3,489,080 3,489,080
Share premium 146,160,837 146,160,837 146,446,833 146,047,149 20,277,386
Other reserves 23,910,771 15,370,082 26,787,714 14,394,545 1,129,344
182,504,814 173,151,023 184,830,757 172,002,026 28,384,891
Commitments and contingents 194,451,931 125,636,911 134,224,075 155,169,565 80,130,170
Gross earnings 79,065,123 75,847,752 84,643,020 57,627,098 27,881,451
Profit before taxation 17,668,584 41,723 28,105,815 19,042,106 8,043,165
(Loss)/profit after taxation 12,931,441 (880,752) 22,885,794 16,056,464 6,083,439
Dividend paid 3,577,650 11,349,982 10,492,625 2,791,263 –
(Loss)/earnings per share - Basic 72k (5)k 141k 173k 87k
– Adjusted 72k (5)k 141k 99k 87k
Number of ordinary shares of 50k 17,888,252 16,262,047 16,214,258 16,142,502 6,978,161
* Declared dividend represents the dividend declared and paid during the year.
Access Bank Plc 139

Notice of Meeting
Notice of the 22nd Annual General Meeting

Notice is hereby given that the 22nd Annual General meeting
of members of ACCESS BANK PLC will be held at the Lagoon
Restaurant, Ozumba Mbadiwe Avenue, Victoria Island, Lagos on
the 28 day of April 2011 at 12:00 noon to transact the following:
Ordinary business Proxy

To consider and, if thought fit, pass the following as Ordinary A member entitled to attend and vote at the Annual General
Resolutions: Meeting is entitled to appoint a Proxy to attend and vote in his stead.
1 To receive and consider the report of the Directors, the Balance A Proxy need not also be a member. A proxy form is attached to the
Sheet, together with the Profit and Loss Account and the Auditor’s Notice and it is valid for the purpose of the meeting. All instruments
Report thereon, for the period ended 31 December, 2010 of proxy should be duly stamped at the Stamp Duties Office and
deposited at the office of the Registrars, United Securities Limited,
2 To elect/re-elect Directors; 14, Idowu Taylor Street, Victoria Island, Lagos, not less than 48 hours
3 To declare a dividend; prior to the time of the meeting.
4 To authorise the Directors to fix the remuneration of the Auditors;
5 To elect/re-elect members of the Audit Committee. Dated this 4th day of April 2011
BY ORDER OF THE BOARD
Special business
A To consider and if thought fit pass the following resolutions as an
Ordinary Resolution:
6 That the Directors’ fee for the financial year ending 31
December 2011 be and is hereby fixed at N7,900,000.00
(seven million, nine hundred thousand Naira only). SUNDAY EKWOCHI
B To consider and; if thought fit; pass the following resolution as a COMPANY SECRETARY
Special Resolution:
Notes
7 That subject to all relevant regulatory approvals being obtained,
the Directors be and are hereby authorised to establish for the Dividend
benefit of employees of the Company or any of its subsidiaries If the proposed dividend of 30 Kobo per share is approved, dividend
an Employee Performance Share Plan for the award of units of warrants will be posted on Thursday, 28 April, 2011 to shareholders
the Company’s shares to the Company’s employees on such whose names appear in the Register of Members on 10 April, 2011.
terms and conditions as the Directors shall from time to time Closure of Register of Members
consider appropriate. The Register of Members and Transfer Books of the Bank will be
closed on 11 April, 2011 to enable the Registrar to prepare for the
payment of the dividend.
Audit Committee
In accordance with S.359(5) of the Companies and Allied Matters
Act, 1990, any member may nominate a shareholder for election as
a member of the Audit Committee by giving notice in writing of such
nomination to the Company Secretary at least 21 days before the
Annual General Meeting.
140 Access Bank Plc

Capital Formation History Business Review
Governance
TIMELINE Number of Shares Amount

11/5/98 Public Issue for Cash 1,200,000,000 600,000,000
21/9/2001 Bonus 300,000,000 150,000,000
23/09/2001 Public Issue for Cash 1,200,000,000 600,000,000
31/03/2003 Bonus 300,000,000 150,000,000
30/08/2004 Bonus 1,000,000,000 500,000,000
31/08/2005 Bonus 1,158,746,000 579,373,000
31/09/2005 Public Issue for Cash 4,111,214,000 2,055,607,000
31/11/2005 Private Placement 499,358,000 249,679,000
31/12/2005 Share Exchange-Capital & Marina 4,187,003,722 2,093,501,861
31/10/2006 Share Reconstruction (6,978,160,860) (3,489,080,430)
31/07/2007 Public Issue for Cash 9,164,340,987 4,582,170,494
31/12/2008 IFC Loan Conversion to Equity 71,756,590 35,878,395
31/06/2009 Bond Conversion 47,788,360 23,894,180
31/06/2010 Bonus 1,626,204,679 813,102,000
End of year 17,888,251,478 5,685,779
Access Bank Plc 141

E-dividend Mandate Form
Following the passing into law by the National Assembly and the In order to prepare for this new payment procedure, we require
official launch of the E-dividend payment system, all registrars have you to kindly complete the E-dividend form below.
been mandated to effect payment of dividend on behalf of their PLEASE NOTE THAT THE SECTION FOR YOUR BANK ACCOUNT
client companies electronically. DETAILS HAS TO BE COMPLETED BY YOUR BANK.
The E-dividend payment system ensures that your dividend is credited Kindly return the duly completed form to the registrar,
directly into the bank account of your choice within 24 hours of the United Securities Limited at the address stated below.
payment date.
DATE DD/MM/YYYY SURNAME/NAME OF COMPANY
PHONE NUMBER OTHER NAMES (FOR INDIVIDUAL SHAREHOLDER)
POSTAL ADDRESS
CITY STATE
EMAIL ADDRESS 1
EMAIL ADDRESS 2
THIS SECTION TO BE COMPLETED BY YOUR BANK

BANK NAME
BRANCH ADDRESS
BANK ACCOUNT NUMBER BANK SORT CODE
BRANCH CODE
I / We hereby request that from now, all dividend warrant(s) due to
me / us from my / our holdings in all the companies indicated above
be mandated to my / our Bank named above.
Shareholder’s Signature or Thumbprint Shareholder’s Signature or Thumbprint AUTHORISED SIGNATURE & BANKERS STAMP
Incorporation number with company seal
The completed form should be returned by post, or hand delivered or to the nearest Access Bank Plc branch closest to the shareholder,
to the office of the registrar, United Securities Limited, 14, Idowu c/o Investor Relations Unit. E:investorrelations@accessbankplc.com.
Taylor Street, Victoria Island, PMB 12753, Lagos. T: 01-730 0898, Scanned copies of the form are not acceptable as only originals will
01- 2714566 – 7 F: 01-2714568 E: info@unitedsecuritieslimited.com be processed.
144 Access Bank plc
Shareholder Information Update Form
I/We wish to request that my/our details as (a) shareholder(s) of
Access Bank Plc be amendedd to reflect the following information
DATE DD/MM/YYYY SURNAME/NAME OF COMPANY
PHONE NUMBER OTHER NAMES (FOR INDIVIDUAL SHAREHOLDER)
PRESENT POSTAL ADDRESS
CITY STATE
EMAIL ADDRESS 1
EMAIL ADDRESS 2
Shareholder’s Signature or Thumbprint Shareholder’s Signature or Thumbprint AUTHORISED SIGNATURE & BANKERS STAMP
Incorporation number with company seal
The completed form should be returned by post, or hand delivered or to the nearest Access Bank Plc branch closest to the shareholder,
to the office of the registrar, United Securities Limited, 14, Idowu c/o Investor Relations Unit. E:investorrelations@accessbankplc.com.
Taylor Street, Victoria Island, PMB 12753, Lagos. T: 01-730 0898, Scanned copies of the form are not acceptable as only originals will
01- 2714566 – 7 F: 01-2714568 E: info@unitedsecuritieslimited.com be processed.
146 Access Bank plc
Proxy Form
22nd Annual General Meeting to be held at Lagoon Restaurant, Ozumba Mbadiwe Avenue, Victoria Island, Lagos
on 28th day of April 2011 at 12:00 noon
I/We
(Name of Shareholder in block letters)
Being a member/(s) of the above named Company hereby appoint Mr Gbenga Oyebode or failing him Mr. Aigboje
Aig-Imoukhuede as my/our proxy to vote for me/us and on my/our behalf at the 22nd Annual General Meeting of the
Company to be held on 28th day of April 2011 and at any adjournment thereof.
Unless otherwise instructed, the proxy will vote or abstain from voting as he/she thinks fit.
DATE DD/MM/YYYY
Name of shareholder
IMPORTANT:
RESOLUTIONS FOR AGAINST
1. Before posting the above proxy, please tear off this
1 To receive and consider the report of the Directors, the Balance Sheet, together with the Profit part and retain it. A person attending the Annual
and Loss Account and the Auditor’s Report thereon, for the period ended 31 December 2010. General Meeting of the Bank should produce this
card to secure admission to the meeting.
2 To elect/re-elect Directors of the Company. 2. A member of the Bank is entitled to attend and
vote at the Annual General Meeting of the Bank.
He is also entitled to appoint a proxy to attend and
3 To authorise the Directors to fix the remuneration of the Auditors. vote instead of him, and in this case, the above
card may be used to appoint a proxy.
3. In line with best practice, the name of two
4 To elect/re-elect members of the Audit Committee.
Directors of the Bank have been entered on
the proxy form to ensure that someone will be
at the meeting to act as your proxy, but if you
5 To declare a dividend.
wish, you may insert in the blank space on the
form(marked*) the name of any person, whether
a member of the Bank or not will attend and vote
6 That the Directors’ fee for the financial year ending 31 December 2011 be and is hereby fixed on your behalf instead of one of the Directors
at N7, 900,000.00 (Seven million, nine hundred thousand Naira only).
named.
4. This proxy, when completed must be deposited at
7 That subject to all relevant regulatory approvals being obtained, the Directors be and are the office of United Securities Limited, 14 Idowu
hereby authorised to establish for the benefit of employees of the Company or any of its
subsidiaries an Employee Performance Share Plan for the award of units of the Company’s Taylor Street, Victoria Island, Lagos, not less than
shares to the Company’s employees on such terms and conditions as the Directors shall from 48 hours before the time fixed for the meeting.
time to time consider appropriate.
5. It is a requirement of the law under the Stamp
Duties Act, Cap 58, Laws of the Federation of
Nigeria, 2004, that any instrument of proxy to
be used for the purpose of voting by any person
entitled to vote at any meeting of shareholders
must bear a stamp duty.
6. If proxy form is executed by a company, it should
be sealed under its common seal or the hand and
seal of its attorney.
Signature of person attending
Before posting the above form please tear off this part and retain it for admission to the meeting
Access Bank Plc RC 125384

22nd ANNUAL GENERAL MEETING TO BE HELD AT LAGOON RESTAURANT, OZUMBA MBADIWE AVENUE, VICTORIA ISLAND, LAGOS ON
28th DAY OF APRIL 2011 AT 12:00 noon
Name and Address of Shareholder
Number Of Shares Held
Corporate Information Business Review
Governance
Corporate Directory
Head Office Address United Bank for Africa ICICI Bank India
40 East 52nd Street ICICI Bank Towers, Bandra-Kurla Complex
Plot 1665 Oyin Jolayemi New York 10022-5911, USA Bandra (E), Mumbai 400051
Victoria Island
Lagos Deutsche Bank Sumitomo Mitsui Banking Corporation
Nigeria 6 Bishopsgate Europe Limited
+234-01-2805289-9 London EC2N 4A, UK 99 Queen Victoria Street
+234-01-4619264-9 London EC4V 4EH, UK
FBN UK
28 Finsbury Circus Danske Bank
Correspondent Banks London EC2M 7DT, UK 2-12 Holmens Kanal
DK-1092 Copenhagen K Denmark
ANZ Bank Ltd HSBC Bank
40 Bank Street, Canary Wharf Johannesburg Branch Zenith Bank (UK) Limited
London E14 5EJ, UK 2 Exchange Square, 85 Mauder Street 39, Cornhill
Sandound, Sandton, 2196, SA London, EC3V 3ND, UK
The Access Bank UK Limited
1 Cornhill ING Handelssbanken Int. (Svenska)
London EC3V 3ND, UK 24 Avenue Marmix, B – 1000 SE-106 70 Stockholm
Brussels, Belgium Sweden
BNP PARIBAS Paris
37 Place du Marche Saint-Honore-75031 Standard Bank of South Africa Mashreq Bank
Paris Cedex 01, France 25, Saver Street Post Box 1250
Johannesburg 2001, SA Dubai, UAE
CitiBank London
Citigroup Center Canada Square UBS KBC Bank Belgium
Canary Wharf P.O. Box CH – 8098 KBC Bank NV,
London E14 5LB, UK Zurich Havenlan 12
1080 Brussel Belgium
CitiBank New York Byblos Bank, London
111 Wall Street Suite 5 Berkeley Square House Mizuho
19th Floor/Zone 1 Berkeley Square Bracken House, One Friday Street
New York NY 10043 USA London W1J 6BS, UK London, EC4M 9JA, UK
CommerzBank AG Bank of Beirut Credit Suisse AG

Corporate Banking Structured Export and Trade Nig. Rep Office 5 Giesshübelstrasse 30
Finance Kaiserplatz 60311 Frankfurt am Main Alfred Rewane Street P.O. Box 100
Germany Ikoyi, Lagos CH-8070 Zurich
Standard Chartered Bank, London IFC

22, Billiter Street 2121 Pennsylvania Av. NW
London EC3M 2RY, UK Washington DC 20433, USA
Union Bank UK J.P. Morgan

14-18, Copthall Avenue Trinity Tower, 9 Thomas More Street
London EC2R 7DJ, UK London E1W 1YT, UK
Access Bank Plc 149

Corporate Directory (Cont.)
Branch Network Wuse Market Branch Cross River State

Erisco BONPET Plaza Calabar Branch
Abia State 36 Duola Crescent 45 Murtala Mohammed Highway
Abia Branch Wuse Zone 5, Abuja 082899294
4, Eziukwu Road 08120797214
Aba Delta State
082-557217 Adamawa State Asaba Branch
Yola Branch 237, Nnebisi Road, Asaba
Umuahia Branch 13/15 Atiku Abubakar Way Jimeta, Yola Delta State
6, Library Avenue 08021490008; 08021489827 056870660
Umuahia
088 660017 Akwa Ibom State Warri Branch
Uyo Branch 57, Effurun Sapele Road
Abuja 21/23 Gibbs Street Warri
Ademola Adetokunbo Branch Uyo 07026060327
54, Ademola Adetokunbo Cresent 085-820699
Wuse II Ebonyi State
Abuja Anambra State Abakaliki
08089046004 Awka Branch 44, Ogoja Road, Abakaliki
1, Ajekwe Close 07023199626
Aminu Kano Branch Off Enugu-Onitsha Express Way
Plot 1195, Aminu Kano Crescent Awka Edo State
Wuse II 046-500832 Akpakpava Branch
Abuja
45, Akpakpava Road, Benin City
08120620632; 07028072816
Nnewi Branch 052-892949
Zone 1 Block 15
Asokoro Branch Edo Ezemewi Road Sapele Road Branch
Plot 87, Yakubu Gowon Crescent Nnewi 145 Benin-Sapele Road
Asokoro 046871525, 046871877 Opp NPDC
Abuja
Benin City
07084563620; 09-8746733; 09-8734432;
Onitsha Branch 054-811843
09- 8734496
6, New Market Road,
Onitsha Uniben Branch
Garki Branch 046-871548, 046-820237
Plot 1231 Ahmadu Bello Way Alumni Building, University of Benin
Garki II Ugbowo Campus
Abuja Bauchi State 052-880996
08121384293; 07040214337 Bauchi Branch
24, Murtala Mohammed Way Uselu Branch
Bauchi 170, Uselu-Lagos Road
Herbert Macaulay Branch
08028099713 Near Uselu Market
Plot 247, Herbert Macaulay Way
Total House Building Uselu
Opposite NNPC Tower Bayelsa State Benin City
Central Business District Yenagoa Branch 052-880544
Abuja Plot 3, Onopa Commercial Layout
09-7803374; 09-7817696; 09-6717937; Alamieyesigha Way Ekiti State
08120797446 Yenagoa Ado Ekiti Branch
08023253197 Plot 5, New Secretariat Road
Kubwa Branch Ado Ekiti
59, Gado NASCO Road Benue State 07061208338
Phase IV, Kubwa Makurdi Branch
Abuja 5, Ogiri Okoh Road, Old GRA Enugu State
08121393678; 09–8734810 Makurdi UNEC Branch
08120329050, 08020560555, 08086686334 University of Nigeria Enugu Campus (UNEC)
National Assembly Branch 048-488885
White House Basement Borno State
National Assembly Complex Maiduguri Branch Ogui Road Branch
Abuja Sir Kashim Ibrahim Way 67, Ogui Road
07042112723, 08029894126 Maiduguri By Nnamdi Azikwe Stadium
076-975896 07023652 071
150 Access Bank Plc

Gombe State Lokoja Branch Aspamda Branch

Gombe Branch Kogi Zone B, R4, Mercy Café
8, New Market Road Plot 82, Lokoja – Kabba Road Aspamda Plaza
08023904011 07084276771 Trade Fair Complex
018187970
Ashaka Branch Kwara State
Ashaka Cement Plc Works Ilorin Branch Awolowo Road Branch
Ashaka Stadium Shopping Complex 58, Awolowo Road
08084360691 Taiwo Road Ikoyi
Ilorin 01-9501739
Imo State Kwara State
Owerri Branch 031-742588 Broad Street Branch
18, Wetheral Road Owerri 115/117 Broad Street
083-430545 Lagos State 01-7610151
Adeniyi Jones Branch
Jigawa State 53 Adeniyi Jones Avenue Burma Road Branch
Dutse Branch Ikeja 4, Burma Road Apapa
10/11 Sani Abacha Way 01-2805952; 01-2805953 Lagos
Dutse 017644580
08034592974 Adeola Odeku Branch
9, Adeola Odeku Street Commercial Road Branch
Kaduna State Victoria island 8/10 Commercial Road
Kaduna Branch 01-2714563; 01-2714562 Opposite Eleganza Plaza
16/20 Bida Road Apapa
off Yakubu Gowon Way Adeyemo Alakija Branch 01-2704226-9
Kaduna 1, Idowu Taylor Street
062-884161 Commerce House Creek Road Branch
Victoria Island Lagos 24A Creek Road Apapa
Kano State 01-7358681 01-8979683, 01-7739167
Kano Branch
12B, Post Office Road Adetokunbo Ademola Branch Festac Branch
Kano 36, Adetokunbo Ademola Street Plot 650A
064-967358 Victoria Island 32 Road
01- 2172105; 01-2712104 3rd Avenue Festac
Wambai Cash Centre 01-7408289; 01-7408297
22, Ibrahim Babaginda Way Aguda Branch
Wambai 1-3 Enitan Street Ibafon
Kano Aguda Surulere 3, Apapa Oshodi-Expressway
064-967358 01-8963554 Warehouse B/Stop
Olodi-Apapa
Alaba Branch 01-8945638
Katsina State
Katsina Branch Shop A65 Alaba International Market
106, IBB Way Lagos Idejo Branch
Katsina State 234 (01) 8177558 1617A Idejo/Danmole
065-434687; 065-433738; 070-98200996 Victoria Island
Lagos
Allen Avenue Branch
01-7301475
Kebbi State 92, Allen Avenue
Birnin Kebbi Branch Ikeja
1, Jos Road 01-4482066, 01-2798116 Idi-Araba Branch
Birnin Kebbi College of Medicine,
08121373449; 08121373448 University of Lagos
Akoka Branch
Ishaga Road
100, St Finbarrs College Road,
Idi-Araba Bus Stop
Kogi State Akoka
Mushin
Obajana Branch Lagos
01-7410650
Opposite Obajana Cement Plc 01-7360693
KM 22 Along Lokoja Kabba Expressway
Idumota Branch
Obajana Apongbon Branch
122, Nnamdi Azikiwe Street
Kogi 16, Apongbon Street Idumota
07087452469 Lagos Island 01 8159556
01-8509258
Access Bank Plc 151

Ilupeju Branch Ogunlana Branch Victoria Island Branch (Head Office)

25A, Ilupeju By-pass 150, Ogunlana Drive Plot 1665, Oyin Jolayemi Street
Ilupeju Surulere Victoria Island
01-7301008; 01-7301009 01-2713197; 01-7410904 Lagos
01-2805624
Ikorodu Branch Old Ojo Branch
7, Ayangburen Road,Ikorodu 153, Old Ojo Road Nasarawa State
01-8503270; 01-8508446 Kuje Amuwo Lafia Branch
01-7374962 Nasarawa
Ikota Branch 32, Jos Road
Block H41 – 43 & H76 – 78 Lafia
Onikan Branch
Ikota Shopping Complex 08083102390
30, King George V Road
08126529480; 08080366572 Onikan
Lagos Island Niger State
Ipaja Branch O7098013634 Minna Branch
157, Abeokuta Express Way Niger
1, David Mark Road
Iyana-Ipaja Osolo Way Branch
Off Paiko Road
01-7300860 18 Osolo Way, off Intl Airport Road Minna
Ajao Estate 08080366620
Lekki Chevron Branch 01-7361168; 01-7361169
Beside Chevron Roundabout
Suleja Branch
Along Lekki-Epe Expressway Palm Avenue Branch Niger
01-8293782; 01-8293781 56, Palm Avenue, Mushin NNPC/PPMC Depot
018793975 Suleja
Ligali Branch 07038403954
15, Ligali Ayorinde Street Point Road Branch
Victoria Island 1B, Point Road, Apapa Ogun State
01-2712130 01-7408815 Abeokuta Branch
No 14, Lalubu Street
Marina BOI Branch Simbiat Abiola Branch Oke-Ilewo
23B, Broad Street 20 Simbia Abiola Way 07040566047
Marina Ikeja
01-2701437; 01 -2701438 01-8771499
Agbara Branch
Plot C 2A/4 Ilaro Road
Maryland Branch Agbara Industrial Estate
6, Mobolaji Bank Anthony Way Tincan Branch 01-7358390; 7358391
Maryland 1, Kirikiri Lighter Terminal
01-2798293; 01-2798291Ashaka Phase 11
Ondo State
Apapa
Akure Branch
01-8909506
Murtala Mohammed Airport 2 Branch 17, Oyemekun Road
Arrival, Murtala Mohammed Airport 2 Akure
Trade Fair Branch 07043031035
Local Terminal
Lagos
Ikeja
Conia Plaza Opposite Kano Plaza
01-2798985 Osun State
Trade Fair Complex
Badagry Expressway Oshogbo Branch
Ogba Branch 01-8737327 Plot 2, Aiyedun Layout
40A/B Ogba Ijaiye Road (Near Old Governor’s Office)
Ogba Lagos Gbogan Road
01-7301000; 01-7301001 Osogbo
035-207525
152 Access Bank Plc

Oyo State Rumuokoro Branch

Bodija Branch 679, Ikwerre Road
Plot 32, Bodija/University of Ibadan Road Rumuokoro – Port Harcourt
Ibadan 07029076283; 07028523858
07098700621
Trans Amadi Branch
Dugbe Branch Plot 466/467
Plot 1, Old Dugbe Market Scheme Trans Amadi Industrial Layout
Dugbe Port Harcourt
Ibadan 084-8955551
02-2007163, 02-7516561, 02-8721513, 02-
8721512 Sokoto State
Sokoto Branch
Iwo Road 27, Kano Road, Sokoto
37, Iwo Road 08085045290
Ibadan
02-8739055 Taraba State
Jalingo Branch
Plateau State 57B, Hammanruwa Way
Jos Branch Jalingo
28A, Rwang Pam Street 07088274989
Jos
07087862982; 07080979478 Zamfara State
Gusau Branch
Rivers State Plot 21, Yakubu Gowon Way
Agip Branch Canteen area,
1, Agip Road Mile 4 Gusau
Rumueme 08120797078
Port Harcourt
084-896334
Azikwe Road Branch

12 Azikwe Road
Port Harcourt
084-779467; 084-898302
Bank Road Branch

10A Bank Road
Opposite R/S Judiciary
Port Harcourt
084-886717, 084-802537
Bonny Island Branch

64, Hospital Road,
Bonny Island
234-8131208265
Olu Obasanjo Branch

Plot 329, Olu Obasanjo Road
Port Harcourt
084-785617, 084798554
Access Bank Plc 153

atm locations Access Bank, Ibafon Branch Access Bank, Umuahia Branch
Access Bank, Idejo Branch Access Bank, Unec, Enugu Branch
Access Bank, Aba Branch Access Bank, Idi Araba Branch Access Bank, Uniben, Benin Branch
Access Bank, Abakaliki Branch Access Bank, Idumota Branch Access Bank, Uselu Branch
Access Bank, Abeokuta Branch Access Bank, Ikorodu Branch Access Bank, Uyo Branch
Access Bank, Ade Odeku Branch Access Bank, Ikota Branch Access Bank, Warri Branch
Access Bank, Ademola Adetokunbo, Access Bank, Ilorin Branch Access Bank, Wuse Market, Abuja Branch
Abuja Branch Access Bank, Ilupeju Branch Access Bank, Yenagoa Branch
Access Bank, Adeniyi Jones Branch Access Bank, Iwo Road Branch Access Bank, Yola Branch
Access Bank, Adetokunbo Ademola, V/I, Lagos Access Bank, Iyana Ipaja Branch Access Bank, Ligali Annex (Teller Implant)
Branch Access Bank, Jalingo Branch Access Bank, Olashore Office (Teller Implant)
Access Bank, Adeyemo Alakija Branch Access Bank, Jos Branch Access Bank, Unicem Plant, Calabar
Access Bank, Ado Ekiti Branch Access Bank, Kaduna Branch (Teller Implant)
Access Bank, Agbara Branch Access Bank, Kano Branch Access Bank, Wambai, Kano (Teller Implant)
Access Bank, Agip Road, Ph Branch Access Bank, Katsina Branch Access Homes Savings and Loans (Teller Implant)
Access Bank, Aguda Branch Access Bank, Kebbi Branch Bagco Supersacks, Surulere (Teller Implant)
Access Bank, Akure Branch Access Bank, Kubwa Branch Dangote Adstar, Ikeja (Teller Implant)
Access Bank, Allen Avenue Branch Access Bank, Lafia Branch Dangote Agrosack, Ikeja (Teller Implant)
Access Bank, Aminu Kano Branch Access Bank, Ligali Ayorinde Branch Newco Factory, Ikeja (Teller Implant)
Access Bank, Apapa Burma Branch Access Bank, Lokoja Branch Unico Office, Ikeja (Teller Implant)
Access Bank, Apapa Pont Road Branch Access Bank, Maiduguri Branch United Securities, Idowu Taylor (Teller Implant)
Access Bank, Apapa Tincan Branch Access Bank, Makurdi Branch Wempco Office, Ibafo (Teller Implant)
Access Bank, Apongbon Branch Access Bank, Maryland Branch
Access Bank, Asaba Branch Access Bank, Minna Branch
Access Bank, Ashaka Branch Access Bank, Nass Complex, Abuja Branch
Access Bank, Asokoro Branch Access Bank, Nnewi Branch
Access Bank, Aspamda Branch Access Bank, Obajana Branch
Access Bank, Awka Branch Access Bank, Ogba Branch
Access Bank, Awolowo Road Branch Access Bank, Ogui Road, Enugu Branch
Access Bank, Azikiwe Branch Access Bank, Ogunlana Branch
Access Bank, Bank Road, Ph Branch Access Bank, Old Ojo Road, Lagos Branch
Access Bank, Bauchi Branch Access Bank, Olu Obasanjo Road, Ph Branch
Access Bank, Benin Branch Access Bank, Onikan Branch
Access Bank, Bodija Branch Access Bank, Onitsha Branch
Access Bank, Boi Builiding, Marina Branch Access Bank, Oshogbo Branch
Access Bank, Bonny Island, Ph Branch Access Bank, Osolo Way, Isolo Branch
Access Bank, Broadsreet Branch Access Bank, Owerri Branch
Access Bank, Calabar Branch Access Bank, Oyin Jolayemi, V/I Branch
Access Bank, Chevron Branch Access Bank, Palm Avenue Branch
Access Bank, Commercial Road, Apapa Branch Access Bank, Pppra Building, Abuja Branch
Access Bank, Creek Road, Apapa Branch Access Bank, Rumuokoro, Ph Branch
Access Bank, Dugbe Branch Access Bank, Sapele Road, Benin Branch
Access Bank, Dutse Branch Access Bank, Simbiat Abiola Way, Ikeja Branch
Access Bank, Festac Branch Access Bank, Sokoto Branch
Access Bank, Garki Branch Access Bank, Suleja Branch
Access Bank, Gombe Branch Access Bank, Trade Fair Complex, Lagos Branch
Access Bank, Gusau Branch Access Bank, Trans Amadi, Ph Branch
154 Access Bank Plc

SUBSIDIARIES ADDRESSES Access Bank (Gambia) Limited Access Bank (Ghana) Limited
Head Office, 9, La Tebu Crescent, Off Giffard Road
47 Kairaba Avenue East Cantonments, Accra
Access Bank Cote d’Ivoire
Fajara, K.S.M.D. T: +233 (302) 781 761/ 784 143/
Immeuble Woodin Center
The Gambia (0)28 953 0150
Avenue Nogues
T: (+220) 4396679, 4399022 F: +233 (302) 783 082
Abidjan Plateau, 01 BP 6928 Abidjan 01
F: (+220) 4396640 E: info.ghana@accessbankplc.com
T: (+225) 20-31-58-30
E: info.gambia@accessbankplc.com W: www.accessbankplc.com/gh
F: (+225) 20-22-56-41
W: www.accessbankplc.com/gm
E: info.cotedivoire@accessbankplc.com
W: www.accessbankplc.com/ci Branch
Branches
Osu Branch
Branches Brusubi Branch 41 Cantonments road
AU Highway Next to Osu Food Court
Nour Al Hayat Branch (Plateau) Brusubi Turntable Oxford Street
Galerie Nour Al Hayat Western Division Osu – Accra
T: (+225) 20 30 52 45/47 The Gambia T: +233 (302) 774 290
F: (+225) 20-22-56-41 T: +220 4410450
F: +220 4410452 Tema Branch
Prima Branch (Marcory Zone 3) Ground Floor
Galerie Prima Center Barra Branch Meridian Plaza
T: (+225) 21 21 03 30/33 North Bank Division Community 1
F: (+225) 20-22-56-41 Barra Tema
The Gambia T: +233 (302) 200 868
Les Rosiers Branch (Riviera Palmeraie) T: (+220) 8805074, 5710437, 6611625
Riviera Palmeraie Les Rosiers 3 Access Bank (Rwanda) S.A
T: (+225) 22 49 01 49 /47 Banjul Branch 3rd Floor UTC Building
F: (+225) 20-22-56-41 ECOWAS Avenue Avenue de la Paix
Banjul P.O. Box: 2059
Adzopé Branch The Gambia Kigali Rwanda
T: (+225) 23 54 19 02 T: (+220) 6611616, 6611647 T: (+250) 252500089/90-94
F: (+225) 20-22-56-41 F: (+220) 4396640 F: (+250) 252575761/252572501
E: info.rwanda@accessbankplc.com
Access Bank (R.D. Congo) SARL Serrekunda Branch W: www.accessbankplc.com/rw
158, Avenue de la Démocratie (ex-Huileries) Sayerr Jobe Avenue
Kinshasa – Gombe Serrekunda Branches
T: (+243) 81 22 22 111 – 14 Kanifing Municipal Council
F: (+243) 81 22 22 116 The Gambia Nyabugogo
E: info.rdcongo@accessbankplc.com T: (+220) 6611617 Boulevard de la Nyabugogo
W: www.accessbankplc.com/cd P.O. Box 2059
Access Latrikunda Kigali Rwanda
Branch Kaw Junction T: (+250) 252504467
Brikama Highway F: (+250) 252504467
Goma branch Latrikunda Sabiji
N°36 Blvd Kanyamuhanga Kanifing Municipal Council Mattheus Branch
Goma / Nord Kivu The Gambia Avenue du Lac Ihema
T: (+243) 81 22 22 104 T: (+220) 6611704, 6611705 P.O. Box 2059
Kigali Rwanda
T: (250) 252 570266
F: (250) 252 570266
Access Bank Plc 155

Musanze Branch Makeni Branch The Access Bank UK Limited

Centre Ville Musanze Access Bank (SL) Limited Head Office
PO Box 2059 1, Magburaka Road 1, Cornhill
Northern Province- Rwanda Makeni EC3V 3ND
T: (+250) 252 546316 Sierra Leone London
F:(+250) 252 546317 T: +232 33 136184 United Kingdom
E: info@theaccessbankukltd.co.uk
Rubavu – Branch Access Bank (Zambia) Limited W:www.theaccessbankukltd.co.uk
Avenue de l’Indépendance Plot 682 Cairo Road
PO Box 2059 PO Box 35273 Mailing Address
Western Province Northend – Lusaka The Access Bank UK Limited
T: (+250) 252 540120 Zambia. 4 Royal Court
F: (+250) 252 540121 T: (+260) 211 227941 Gadbrook Park
F: (+260) 211 229967 Northwich
Rusizi – Branch E: info.zambia@accessbankplc.com Cheshire
PO Box 2059 W: www.accessbankplc.com/zm CW9 7UT
Western Province
T: (+250) 252 537298 Branches Branch
F: (+250) 252 537294
Longacres Branch Access Bank (UK) Limited.
Plot No. 2166, Haile- Salassie Avenue 53, Davies Street,
Remera- Branch PO Box 36368 W1K 5JH
Gasabo District Lusaka London,
PO Box 2059 T: (+260) 211 252217/252248/252250 United Kingdom.
T: (+250) 255110287 F: (+260) 211 252207 Tel: +44845 2935535
F: (+250) 255110287
Kitwe Branch FinBank Burundi
Access Bank (Sierra Leone) Limited Plot 493/494, Union House Boulevard de l’Indépendance
Head Office Zambia Way BP 2998 Bujumbura
30, Siaka Stevens Street PO Box 20033 Burundi
Freetown Kitwe T: (+257) 22243206, 22246580
Sierra Leone. T: (+260) 212 228673-228674 F: (+257) 22243207, 22246579
T: (+232) 22 229772 F: (+260) 212 228675 E: finbank@usan-bu.net
F: (+232) 22 220119
E: info.sierraleone@accessbankplc.com
Ndola Branch
W: www.accessbankplc.com/sl
Stand No. 9, 10 & 11
Plot 3055 Mpelembe House
Branches PO Box 70786
Congo Cross Branch Ndola
Access Bank (SL) Limited T: (+260) 620886/620887
1, Murray Town Road F: (+260) 620888
Congo Cross
Freetown Acacia Branch
Sierra Leone Stand No.227868
T: +232 33 195274 Corner Great East Rd/Thabo Mbeki Rd
PO Box 37273
Cline Town Branch Lusaka
Access Bank (SL) Limited T: (+260) 255965/66
1, Ross Road
Cline Town
Freetown
Sierra Leone
Phone +232 33 950647
156 Access Bank Plc

Introduction
& contents
Access Bank Plc is the Bank of best practice with

consistent growth in all key performance indicators
over the past 8 years. We are currently one of the
largest banks in nigeria. As an emerging leader in Africa,
Access Bank seeks not only to rank amongst the top 3
nigerian Banking Groups but also to become a major
catalyst for growth across the African continent.
Access Bank’s corporate social Responsibility

(csR) Report is prepared in order to provide
information on the economic, environmental
and social performance that contributed to our
sustainability in 2010. A summary of which can
be found on page 26 of this report.
oVeRVIeW FInAncIAl stAteMents

1 strategic & Financial Highlights 87 Independent Auditor’s Report
2 Business Segment Review 88 statement of significant Accounting policies
4 location & offices 96 consolidated profit & loss Account
6 chairman’s statement 97 consolidated Balance sheet
8 chief executive’s Review 98 statement of cash Flow
99 notes to the Group Financial statements
BusIness ReVIeW 137 statement of Value Added
138 Four-Year Financial summary
10 Report of the external consultant on 139 Five-Year Financial summary
the Board Assesment
12 Institutional Banking
14 Commercial Banking sHAReHoldeR InFoRMAtIon
16 Investment Banking
18 Retail Banking 140 notice of Meeting
20 Transaction Services 141 capital Formation History
22 products & services 143 e-mandate Form
23 It services 145 shareholder Information update Form
24 our people & culture 147 proxy Form
26 corporate social Responsibility designed and produced by Rare corporate design, london
28 Risk Management
coRpoRAte InFoRMAtIon www.rarecorporate.co.uk
GoVeRnAnce 149 corporate directory
71 directors, officers & Advisors

72 Board of directors
76 Management team
77 directors’ Report
82 directors’ Responsibilities & statutory
Audit committee Report this report is printed on 150gsm Fsc silk art paper.
83 corporate Governance the Forest stewardship council is a non-profit entity that supports environmentally appropriate, socially
beneficial and economically viable management of the world’s forests. Fsc independently tracks, traces
and identifies wood fibers from the forest through every step of the procurement, manufacturing and
printing process, confirming that each supplier in the chain follows rigorous controls, management and
reporting practices.
Access Bank Plc
ACCESS BANK PLC
A Catalyst
for Growth
in Africa
Access Bank Plc

Plot 1665, Oyin Jolayemi
Victoria Island, Lagos State,
Nigeria
T: (+234) 1 461 9264-9
F: (+234) 1 461 8811 Access Bank Plc

A Catalyst For Growth in Africa: Access Bank PLC

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A Catalyst For Growth in Africa: Access Bank PLC

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ACCESS BANK PLC

Annual Report and Accounts 2010

Access Bank Plc

Access Bank Plc is the Bank of best practice with

Access Bank’s corporate social Responsibility

oVeRVIeW FInAncIAl stAteMents

GoVeRnAnce 149 corporate directory

71 directors, officers & Advisors

2010 at a glance 2010 Performance highlights

— T he Group recorded Gross earnings Profit before tax

from commercial banking

Total assets Treasury bills

Access Bank Plc 1

Access Bank Plc’s business model is structured

Institutional The Institutional Banking division offers a full

Commercial The Commercial Banking division focuses on serving

2 Access Bank Plc

+12% (N4.15bn) (N3.48bn)

+1116% N1.98bn N16.17bn

Financial The objective of the Financial Markets division is to

Retail Banking The Products & Retail Banking division currently

Access Bank Plc 3

Nigeria We are currently one of the largest banks in

0.6% -11.1% -3.3% 8.04%

114 121 70 108

4,465 8,000 1,010 3,000

4 Access Bank Plc

Rwanda Sierra Leone The Gambia Zambia United

1.7% -0.4% -0.7% 0.03% -1.22%

135 28 150 152 60

6,890 8,593 16,640 5,505 1,079

Access Bank Plc 5

Distinguished shareholders, it is with

6 Access Bank Plc

“Our Bank’s continuous

Corporate Governance and Risk Management

Access Bank Plc 7

I am pleased to report that our

8 Access Bank Plc

“The quality of our human capital,

Our analysis convinces us that a significant increase in the scale of

Passion for customers

Access Bank Plc 9

Friday, 18th March 2011

REPORT OF THE EXTERNAL CONSULTANT ON THE BOARD ASSESSMENT OF

The composition of the Board of Directors is in compliance with the requirements of

10 Access Bank Plc

Friday, 18th March 2011

SUMMARY REPORT ON CORPORATE GOVERNANCE

The review was conducted in February 2011.

Access Bank Plc 11

1 Industrial Cartons Limited. In line with 2

2 Nestle Nigeria Plc. Access Bank Plc

3 Dangote Cement Plc. Address: (Obajana

12 Access Bank Plc

At a glance 2010 Performance highlights

N17.8bn as the anchor of the value chain strategy/

chosen to play in and has built competence

N329.7bn are drawn from key sectors in the economy

41% (Loss)/Profit on Ordinary Activities Before Tax

Access Bank Plc 13

14 Access Bank Plc

At a glance 2010 Performance highlights

— T he Group recorded Gross earnings Profit before tax

1 Industrial Cartons Limited. In line with 2

2 Nestle Nigeria Plc. Access Bank Plc

2 1 Financial Markets. We have

3 1 ATMs. Migration of more cash 3 Mulit-channel platforms.

• The Transaction Services